corporate social responsibility report 2006 · corporate social responsibility?,” clarified our...
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For People, Society and the Earth
Corporate Social Responsibility Report2006
Business Structure
Global Network
Cement
4 In
-ho
use C
om
pan
ies
2 D
ivis
ion
s2
Div
isio
ns
Metals
Energy Business
Precious Metals
AluminumAdvanced
Materials & Tools
Affiliated Corporations
Electronic Materials & Components
Provides various types of cement and building
materials for construction and civil engineering
sectors.
Prov ides nuclear energy-re la ted serv ices,
geothermal and hydroelectric power supply and
imported coal to electric power companies.
Provides industrial-use precious metal materials,
and gold and jewelry to individuals.
Focuses on aluminum beverage cans and rolled
aluminum for automotive and building material
applications.
Focuses on electrolytic copper cathodes, copper
and copper alloy products, and processed copper
products for use in making electrical wire.
Emphasizes cemented carbide products for metal fabrication,
diamond-cutting tools, powder metallurgy products for transportation
equipment and machinery, and high-performance alloy products.
Manages, restructures and supports the operations
of 45 Group companies that fall outside of the
aforementioned business segments.
Offers electronic materials and components to
makers of semiconductors, electronic equipment
and information and communications devices.
■ Company Name … Mitsubishi Materials Corporation
■ Date Established … April 1, 1950
■ President ………… Akihiko Ide
■ Capital …………… ¥101,753 million
■ Total Assets ……… ¥1,078,576 million
■ Number of Employees ……… 3,744
(Consolidated: 19,020)
■ Consolidated Subsidiaries …102
■ Equity Method Affiliates …… 28
■Membership
Nippon Keidanren (Japan Business Federation),
KEIZAI DOYUKAI (Japan Association of Corporate
Executives), Japan Cement Association, Japan
Mining Industry Association, International Council
on Mining & Metals, etc.
Corporate Data (Nonconsolidated) (As of March 31, 2006)
Note: The companies listed here are only a few of the overseas members of the Mitsubishi Materials Group.
Southeast Asia:
■ Metals business
PT. Smelting (Indonesia)
■ Advanced Materials & Tools business
MMC Tools (Thailand) Co., Ltd. (Thailand)
PT. Higashifuji Indonesia (Indonesia)
PT. MMC Metal Fabrication (Indonesia)
■ Electronic Materials & Components business
MMC Electronics (Thailand) Co., Ltd. (Thailand)
MMC Electronics (M) Sdn. Bhd. (Malaysia)
The Mitsubishi Materials Group at a Glance
Mitsubishi Materials CSR Report 20061
Thailand Malaysia Singapore
Indonesia India
East Asia:
■ Cement business
Yantai Mitsubishi Cement Co., Ltd. (People’s Republic of China)
■ Advanced Materials & Tools business
Tianjin Tianling Carbide Tools Co., Ltd. (People’s Republic of China)
■ Electronic Materials & Components business
MMC Electronics (H.K.) Ltd. (People’s Republic of China)
MMC Electronics Hangzhou Co., Ltd. (People’s Republic of China)
People’s Republic of China Taiwan South Korea
OCEANIA:
■ Affiliated Corporations
Mitsubishi Materials (Australia) Pty., Ltd. (Australia)
Australia
SOUTH AMERICA:
■ Advanced Materials & Tools business
MMC-Metal do Brasil Ltda. (Brazil)
Chile Brazil
Europe:
■ Advanced Materials & Tools business
MMC Hartmetall GmbH (Germany)
Mitsubishi Materials España S.A. (Spain)
MMC Hardmetal Russia Ltd. (Russia)
MMC Hardmetal Poland, Sp.zo.o. (Poland)
Netherlands United Kingdom Germany
Russia Poland
France Spain Italy
NORTH AMERICA:
■ Cement business
MCC Development Corp. (United States)
Mitsubishi Cement Corp. (United States)
■ Advanced Materials & Tools business
Mitsubishi Materials U.S.A. Corp. (United States)
■ Electronic Materials & Components business
MMC Electronics America Inc. (United States)
Mitsubishi Polycrystalline Silicon America Corp. (United States)
Canada United States Mexico
This report serves as a communication tool to acquaint stakeholders—all people with a vested interest in Mitsubishi Materials and the Group it leads—with the corporate social responsibility (CSR) activities under-taken by the Mitsubishi Materials Group in an easy-to-understand for-mat that promotes greater awareness and appreciation of the Group’s efforts.
The editorial staff has selected topics and content designed to read-ily convey the stance that the Group takes and the concepts it applies in tackling CSR issues in its daily business activities, thereby realizing the corporate philosophy “For people, society and the Earth.” CSR Report 2006 also includes a description of the Medium-Term CSR Direction, which was just recently formulated to reinforce the effec-tiveness of CSR activities.
Other corporate details, such as performance data, which is not contained in CSR Report 2006, is available on the Company’s web site. Please visit us at:http://www.mmc.co.jp/english/.
CSR Report 2006 has been prepared in compliance with the 2002 version of Sustainability Reporting Guidelines set forth by the Global Reporting Initiative.
■ PeriodThe report focuses on fiscal 2006, ended March 31, 2006, with a partial status report, as of September 30, 2006, as well as a description of some activities assumed prior to fiscal 2006.Note: For the purpose of this report, fiscal 2006 includes data for the period beginning April 1, 2005, and ending March 31, 2006, or as of March 31, 2006.
■ CoverageInformation regarding society and the environment applies primar-ily to Mitsubishi Materials but includes some Group companies as well. Financial data pertains to Mitsubishi Materials and its consoli-dated subsidiaries.
■Major changes in reporting structure:• Following the October 1, 2005 transfer of aluminum beverage
can operations from Mitsubishi Materials to Universal Can Corp., a joint venture with Hokkai Can Co., Ltd., (now: Hokkan Holdings Ltd.), the Company’s Yuki, Fujioyama, Gifu and Okayama produc-tion sites became facilities of Universal Can.
• Following the merger of Mitsubishi Materials’ powder metallurgy products operations with those of Plansee Holding AG of Austria on December 1, 2005, the Company’s Niigata and Fujioka plants became facilities of Mitsubishi Materials PMG Corporation, a sub-sidiary of the newly formed Plansee Mitsubishi Materials Global Sinter Holding S.A.(PMG), an affiliate accounted for under the equity method.
In this report, “Mitsubishi Materials” and “the Company” refer to the nonconsolidated entity “Mitsubishi Materials Corporation.”
CSR Report 2006 is intended solely for the purpose of providing information that enables investors and other stakeholders to evalu-ate the CSR activities undertaken by Mitsubishi Materials. The final decision, including any investment decisions, rests with individuals. The Company assumes no responsibility or liability, whatsoever, for any losses or damages resulting from investments or other actions based on information in this report.
Scope of Presentation
Editorial Policy Table of ContentsThe Mitsubishi Materials Group at a Glance ............... 1
Message from Management
—For People, Society and the Earth— ..................... 3
Management ReportCorporate Philosophy and CSR Promotion
Structure ................................................................... 5
Medium-Term CSR Direction ...................................... 7
Action Plans ................................................................ 8
Compliance and Risk Management ............................ 9
Major Issues Regarding the Group .............................10
Financial Highlights ....................................................11
Company Report—Our GoalsCement Company ......................................................13
Metals Company ........................................................15
Advanced Materials & Tools Company ......................17
Electronic Materials & Components Company ..........18
Energy Business Division, Precious Metals Division ...19
Aluminum Division, Affiliated Corporations Division ... 20
Establishing a Resource-Recycling Society .............. 21
Social ReportWith Shareholders and Investors .............................. 23
With Customers ........................................................ 25
With Employees ........................................................ 27
With Suppliers ........................................................... 30
Future-Oriented R&D ................................................. 31
Open Lines to the International Community .............. 33
Material Forests:
Utilizing Diverse Advantages of Forests ................. 35
Environmental ReportEnvironmental Conservation ...................................... 37
Prudent Use of Resources While Contributing
to Protection of the Natural Environment ................ 41
Efforts to Prevent Global Warming ............................ 43
Eco-Product Creation ............................................... 45
Comparative Table with GRI Guideline 2002 ............ 47
Editorial Postscript .................................................... 50
Mitsubishi Materials CSR Report 2006 2
Branding 2005 as the inaugural year of CSR, the Mitsubishi Materials Group infused its business manage-ment practices with a new perspective—a CSR perspec-tive—and emphasized new commitments that would take business management practices to the next level.
For example, we endeavored to contribute more to the formation of a resource-recycling society through the implementation of such structures as a processing system, adopted by both the Cement and Metals companies, that converts waste into reusable raw materials. We vigorously pursued more forward-looking R&D activities, casting our spotlight on fuel cells, which have drawn attention as next-generation power sources, and pursuing the develop-ment of more environment-friendly eco-products. We also reformulated our company-owned forest management plan to elicit benefits for the global environment through responsible management of wooded lands, and we under-took reforestation events with local citizens and groups to
ProfileJune 2000 Managing Director
June 2002 Executive Vice President
June 2004 President (current)
January 2005 Chairman of CSR Committee (current)
Akihiko Ide
President, Mitsubishi Materials Corporation
restore the natural foliage around the Naoshima Smelter & Refinery and the Hosokura Mine.
The past year of CSR activities has reinforced the per-ception that CSR—or rather, fulfilling the social responsi-bilities expected of corporate citizens—is crucial if a com-pany wants to be trusted and needed by society. CSR is, indeed, the very essence of business.
CSR policy and commitments are diverse, varying by company and industry. But regardless of the defining details, the underlying significance of CSR is the same for every company—CSR is integral to corporate existence and efforts to support CSR are essential. At Mitsubishi Materials, we believe the true value of a company shines through when the merits of CSR are acknowledged and a commitment is made to address accountability.
For the Mitsubishi Materials Group, CSR underpins our goal to be a collection of companies trusted by society. We will therefore tackle CSR activities with our corporate feet firmly on the ground—that is, being sensible about targets and the strategies to reach them—and we will deliver solid results, one step at a time. To ensure that the CSR activities we undertake lead to the right results, we considered the question, “What is Mitsubishi Materials’ corporate social responsibility?,” clarified our perspective on Groupwide CSR and came up with the following defi-nition of CSR for the Group.
To crystallize our corporate philosophy under this defini-tion, we will focus on three key issues in fiscal 2007.
The first is “Respect relationships with people.”This requires us to enhance the perception of the
Group, as held by shareholders, employees, customers, suppliers, local communities and other stakeholders, while deepening our understanding of stakeholders’ positions, and to improve our satisfaction rating with stakeholders.
The second is “Respect promises made to society.”This demands higher levels of compliance and risk
management and a fine-tuned ability to prevent business-related problems before they develop—a corporate quality that can be achieved by instilling a stronger commitment to compliance within the Group and upholding suitable risk management practices.
CSR from Our Perspective
The Mitsubishi Materials Group is a company that will continually contribute to “people, society and the Earth”
Mitsubishi Materials CSR Report 20063
M e s s a g e f r o m M a n a g e m e n t
The Mitsubishi Materials Group is an ensemble of
companies operating under the composite profile
of a comprehensive basic materials maker. As a
group, we provide resources, basic materials and
energy indispensable to modern lifestyles, and in
these efforts, we adhere to a corporate philosophy
that emphasizes efforts that contribute to people,
society and the Earth.
CSR for the Group thus hinges on making this
philosophy a reality, through the sincere fulfillment
of the obligations and expected role that society
places on a corporate citizen, disclosure of the
approaches taken—with proper explanation—and
the constant pursuit of two-way communication
with stakeholders to promote greater mutual
understanding.
These actions will underpin a position of trust in
society.
ProfileJune 2003 Managing Director
June 2004 Executive Vice President (current)
June 2006 CCO (current)
June 2006 Vice-Chairman, CSR Committee
(current)
Tsuneo Katsuki
Executive Vice President and Chief CSR Officer (CCO)
Mitsubishi Materials Corporation
The third is “Respect the Earth.”This necessitates the creation of products with reduced
environmental impact and the pursuit of business activities with energy- and resource-saving, waste recycling and lim-ited use of hazardous substances in mind.
Our definition of CSR and the three key CSR-supporting issues are like threads that run through the entire Group tapestry, providing common ground for all employees in the execution of assigned business activities.
The Mitsubishi Materials Group provides a comprehensive range of basic materials that help shape a comfortable society. From cement and copper, the foundations of social infrastructures, to semiconductor materials and vari-ous electronic materials and components, which support the electronics industry, and further to tools and automo-tive products, the basic materials that we make and mar-ket are essential to modern lifestyles.
Most of our products are made from limited under-ground resources formed by nature’s hand. We take the Earth’s gifts, albeit temporarily, give them value-added qualities so that they are more practical for applications in the modern world, and then send them on to other com-panies in other industries. When the products have served their usefulness, we collect and recycle them for reapplica-tion as raw materials and fuel sources in our manufactur-ing operations.
That is to say, our very own business activities—be they cement or metal production or some other manufactur-ing operation within the Group—are directly connected to the formation of a resource-recycling society and could be regarded as contributing to sustainable social develop-ment. Such efforts exemplify the CSR activities that the Group has pursued and will continue to pursue.
Our No. 1 priority is to embrace CSR in our core busi-nesses—the production end of operations—and through these operations, address social issues.
Our corporate philosophy and major objective—contrib-uting to people, society and the Earth—can be achieved through the routine activities of employees. To see the viewpoints of others while helping others to see ours, through discussions with a diverse array of stakeholders, and to execute business tasks in the spirit of compliance and with an understanding of the importance of compli-ance—these are part and parcel of what all employees are expected to do in the course of their daily duties. Such efforts are important to CSR activities.
Also, the results of CSR activities are not limited to those that the eye can see. Indeed, CSR activities fos-ter the knowledge that we are citizens before company employees. They promote a good corporate atmosphere, supported by a proactive stance—i.e., “What can I do now?”—and a down-to-earth perspective on the daily routine. These intangible results become the driving force that pushes CSR activities forward.
At Mitsubishi Materials, we subscribe to the long-held belief that “people define a company,” and we appeal to
employees throughout the Company to “value profession-alism highly.” We emphasize the value of confidence and pride in personal techniques and special talents and stress the importance of taking responsibility and maintaining a professional perspective. All employees possess the forti-tude and also have the obligation to contribute to people, society and the Earth, and their conduct as citizens with good common sense benefits not only society but the Company and the Group as well.
Through CSR Report 2006, we aim to convey to all stakeholders the social and environmental aspects of Group CSR as well as our economic commitment to related activities and our overall stance on the subject. We hope this report will also function as a gateway to wider communication with stakeholders. We welcome your feedback.
Solid CSR Commitment in Core Businesses
Through the Daily Routines of Each and Every Employee
Mitsubishi Materials CSR Report 2006 4
M e s s a g e f r o m M a n a g e m e n t
Mitsubishi Materials CSR Report 20065
Corporate Philosophy and CSR Promotion Structure
In 1997, we introduced a corporate philosophy and code of conduct. Since then, we have established and
reinforced the systems, including corporate governance and the CSR promotion structure, that form our
operating foundation so that we can realize the attributes a group like the Mitsubishi Materials Group
should possess and fulfill the social responsibilities appropriate to a group of this stature.
• Established Human Rights Advancement
Department
1992
Major CSR Developments
Code of ConductCorporate Philosophy
The Principles We Stand On– For People, Society and the Earth –
As a d ivers i f ied mater ia l s company, Mitsubishi Materials has contributed to the creation of an affluent society through the supply of basic materials indispensable to the world.
Today, our activities cover a wide range, from the manufacture of basic materials to fabricated products and new materials with high-performance features, as well as the pro-vision of systems and engineering services.
To respond to the various needs of society, we are constantly tackling research and devel-opment on new technologies and products and endeavor to provide ever more superior products, systems and services to the world.
We will continue to address the require-ments of the world in this new era, such as technical innovation, development of information technology, globalization and a heightened awareness of environmental protection.
At the same time, we will carefully and effi-ciently use natural resources and raw mate-rials, which are gifts of the Earth, and will support building social systems based upon resource recycling.
It is thus our principles to serve people, soci-ety and the Earth through our varied business activities.
Article 1 We will seek to create a Mitsubishi
Materials Group receptive to diverse
personalities and value perceptions
by encouraging each member of the
Group to be fully motivated and com-
mitted to self-improvement.
Article 2 We will engage in efficient business
management and pursue sustainable
corporate development.
Article 3 We will respect the basic human rights
of all people and create a spirited, safe
and comfortable work environment.
Article 4 We will conduct fair and equitable
business transactions by providing safe,
high-quality products, systems and ser-
vices at reasonable prices.
Article 5 We will endeavor to secure the under-
standing and trust of society, and will
maintain a harmonious coexistence
with society.
Article 6 We will comply with laws and regula-
tions and conduct fair business activi-
ties with common sense.
Article 7 We will carry out our duties with integ-
rity, in line with the rules and stan-
dards established by the Company.
Article 8 We will endeavor to protect the envi-
ronment, and will apply every measure
for effective uses and recycling of
natural resources.
Article 9 We will carry out proactive corporate
communications, and will respect the
values and inherent rights of all people
with regard to information.
Article 10 We, as members of the international
community, will contribute to the
development of each region where we
maintain a presence.
The 10 Articles of Our Code of Conduct
• Formulated corporate philosophy and code of conduct
1997
• Established GPM* Committee for Companywide
environmental management* Green Productivity Management
Details on page 37
1998
status of legal compliance, risk management, management efficiency and other administrative factors.
Corporate auditors and the Internal Audit Department keep lines of communication open to ensure effective audit-ing activities. They meet to discuss internal auditing plans for the year. They also regularly get together to exchange infor-mation and share opinions regarding the results of audits.
Since December 2002, Mitsubishi Materials has endeavored to strengthen risk management and compliance throughout the Group.
To complement these fundamental aspects of business management with a more fine-tuned ability to address the expectations of stakeholders and the higher level of confidence they have accorded us, we vigorously pursued in-house discussions on CSR activities, which led to the January 2005 establishment of the CSR Committee, chaired by the President, and the CSR Department, as a special unit dedicated to CSR efforts. We also assigned a director responsible for CSR, with the title Chief CSR Officer, who assumed the function previously assigned to the director responsible for compliance.
In addition, because it is important for employees throughout the Group to have a greater awareness of CSR activities, we encourage Groupwide participation through the creation of three positions that deal with the account-ability, management and oversight of CSR activities at all in-house divisions and Group companies.
Environmental protection is a key CSR activity, and we continuously strive to enhance our response to emerging issues with environmental management activities, under the authority of the director responsible for the environment. The Environmental Management Division at headquarters acts as the hub of environment-related efforts.
We will rally a Groupwide response to support our status as a trusted company and to raise corporate value through an ongoing commitment to sustainable development of people, society and the Earth through our business activities.
Mitsubishi Materials CSR Report 2006 6
Management Report
Board of Director and Executive Officer StructuresTo preserve appropriate management decision making and supervision at Mitsubishi Materials, the Company main-tains a Board of Directors comprising nine internal directors and one external director who has no special stake in the Company, for a total of 10 directors on the Board. We con-sider this arrangement appropriate for quick decision mak-ing and for reinforcing management objectivity and trans-parency. On issues that are referred to the Board of Directors for resolution, the Corporate Strategy Committee, compris-ing the president and several directors, will first discuss the issues fully and then pass them on to the Board, a process that makes decision making more efficient and effective.
In 2000, we adopted an executive officer system to accel-erate decision making and support flexible execution of decisions. Then in 2002, we terminated the system in which directors hold more than one executive officer position concurrently, to clearly differentiate between the decision-making and supervisory responsibilities of management and the execution of operations in each business segment.
Auditing StructureIn addition to operational audits and accounts audits per-formed by corporate auditors and the Board of Corporate Auditors, as well as accounting audits undertaken by an independent accounting firm, we implement internal audits on compliance status and other aspects through the Internal Audit Department.
The Board of Corporate Auditors comprises three stand-ing corporate auditors, including one external corporate auditor, and one part-time member, also from outside the Company. The Board audits directors to ensure that they have executed their duties and also regularly meets with the corporate auditors of principal subsidiaries to reinforce coordination of the auditing structure within the scope of consolidated management.
Meanwhile, the Internal Audit Department undertakes audits of the Company and its subsidiaries to ascertain the
Corporate Governance
Board of Directors
Corporate Strategy Committee
CSR Committee Director Responsible for Personnel
Evaluation Committee Internal Contact Office
Director Responsible for CSRChief CSR Officer(CCO)
Corporate Divisions In-House Companies, Business Divisions
Plants, Branches Mitsubishi Materials Subsidiaries and Affiliates
CSR Department
■ CSR Promotion Structure
General Meeting of Shareholders
Board of DirectorsManagement decision making and oversight
Corporate Strategy CommitteeDiscusses important matters
Operational auditing
Corporate Auditors Assistance Department
CSR Department
Accounts auditing
Independent Accountants
Operational execution
Appointments and dismissals
Appointments and dismissals
Headquarters and In-House Companies
Appointments, dismissals and oversight
Appointments and dismissals
Executive Officers Internal auditsInternal Audit Department
Deliberates on CSR activitiesCSR Committee
Board of Corporate Auditors
■ Overview of Corporate Governance Structure
• Established Committee for Nuclear Safety Measures
• Issued first environmental report• Introduced in-house company system
1999
• Introduced executive officer system, appointed external
director to Board of Directors
2000
• Established Risk Management Committee, and Corporate
Ethics and Compliance Committee
• Established Internal Contact Office
• Joined the International Council on Mining & Metals (ICMM)• Terminated concurrent positions of director and executive officer
2002
CSR Promotion Structure
Mitsubishi Materials CSR Report 20067
Medium-Term CSR Direction
To clarify the direction that we should take as a company and to ensure that stakeholders fully understand
management decisions, we revisited the topic of Groupwide CSR and came up with a new definition. We
then forged a medium-term CSR direction, based on this definition, which all employees will enthusiasti-
cally follow as one in the development of CSR activities.
Major CSR Developments
In April 2006, Mitsubishi Materials defined the meaning of CSR as it pertains to the entire Group to enable all employees to act as one in a consolidated effort to fulfill CSR. The Company also identified priority CSR themes to address over the next three years, and is orchestrating progress under a single, medium-term CSR direction.
Guided by this clear-cut definition of CSR and an unambigu-ous CSR policy, the Mitsubishi Materials Group will follow a sure-footed path and earnestly endeavor to fulfill its corporate social responsibilities.
Our Medium-Term CSR Direction will guide us in preparing action plans to promote and execute appropriate CSR activities.
Meaning of CSRThe Mitsubishi Materials Group is an ensemble of companies operating under the composite profile of a comprehensive basic materials maker. As a group, we provide resources, basic materials and energy indispensable to modern lifestyles, and in these efforts, we adhere to a corporate philosophy that empha-sizes efforts that contribute to people, society and the Earth.
CSR for the Group thus hinges on making this philosophy a reality, through the sincere fulfillment of the obligations and expected role that society places on a corporate citizen, disclosure of the approaches taken—with proper expla-nation—and the constant pursuit of two-way communication with stakeholders to promote greater mutual understanding.
These actions will underpin a position of trust in society.
Medium-Term CSR DirectionTo genuinely contribute to people, society and the Earth, the Mitsubishi Materials Group will prioritize three issues over the next three years, beginning in fiscal 2007.
1. Respect relationships with people:Reinforce ties to stakeholdersPlants and companies under the Group umbrella will strive to enhance the
perception of the Group, as held by shareholders, employees, customers, suppli-ers and other stakeholders, while deepening our understanding of stakeholders’ positions, and also strive to improve our satisfaction rating with stakeholders.
2. Respect promises made to society:Ensure thorough compliance and risk management practicesWe will systematically reinforce levels of compliance and risk management to
ensure legal compliance—a vital condition for expanding corporate activities—and to stop business-related problems before they start.
3. Respect the Earth:Reduce environmental impactIn our commitment to the Green Productivity Management (GPM) activities,
which serves to reduce environmental impact, we will direct efforts toward such measures as saving energy and resources, cutting waste and limiting the use of hazardous substances.
CSR Definition and Medium-Term CSR Direction
Economic responsibility
Ethical responsibility
Compliance responsibilit y
Customers
Employees
Local communities
GovernmentGlobal environment
Nongovernmental organizations Nonprofit organizations
Suppliers
Shareholders and investors
For People, Society and the Earth
Realizing Corporate Philosophy
Contributing to society through core businesses (products and services)
Environment-friendly perspective
Trust and Sharing of Sense of Achievement Mitsubishi Materials Group
• Revised corporate philosophy and code of conduct
to cover the entire Mitsubishi Materials Group
2003
• Announced CSR Declaration
• Established CSR Promotion Structure, underpinned by CSR
Committee and CSR Department
• Formulated Fiscal 2006 CSR Action Plans
• Issued first CSR Report, which included environmental report
2005
• Determined Medium-Term CSR Direction
• Formulated Fiscal 2007 CSR Action Plans
2006
Mitsubishi Materials CSR Report 2006 8
Corporate Marketing
Department
Corporate Communications
& IR Department
Personnel Department
Procurement & Logistics
Department
Onahama Smelting &
Refining Co., Ltd.
JEMCO Inc.
Dia Consultants Co., Ltd.
East Japan Recycling
Systems Corp.
Mitsubishi Aluminum
Co., Ltd.
Mitsubishi Materials
Energy Corp.
Mitsubishi Materials Kobe
Tools Corp.
Mitsubishi Materials
Techno Corp.
Mitsubishi Materials
Polycrystalline Silicon Corp.
Ryoko Lime Industry
Co., Ltd.
• Improved distribution of
product information from
the perspective of raising
customer satisfaction
• Reinforced investor rela-
tions activities
• Promoted “globalization-
ready” personnel training
• Enhanced lines of com-
munication with suppliers
• Improved environmental
conditions in the region
• Enhanced employee train-
ing programs
• Established continuous
employment system for
seniors
• Strengthened labor safety
program
• Enhanced lines of com-
munication with suppliers
• Reinforced measures to
safeguard customers’
personal information
• Developed and main-
tained bonds of trust with
local community
• Improved distribution of
product information from
the perspective of raising
customer satisfaction
• Established continuous
employment system for
seniors
• Developed and main-
tained bonds of trust with
local community
Cement Company
Metals Company
Advanced Materials &
Tools Company
Electronic Materials &
Components Company
Energy Business Division
Precious Metals Division
Aluminum Division
Affiliated Corporations
Division
• Expand industrial waste processing operations
• Reinforce commitment to health and safety
• Instill a deeper awareness of corporate ethics
and compliance
• Promote activities to protect the environment
• Reinforce commitment to health and safety
• Become a value supplier to global automotive,
aircraft and IT industries
• Instill a deeper awareness of corporate ethics
and compliance
• Implement all aspects of GPM activities
• Enhance lines of communication with local com-
munity
• Expand distribution of product information
• Maintain meticulous control of information
received from customers
• Boost customer satisfaction
• Instill a deeper awareness of corporate ethics
and compliance
• Reinforce environmental risk management
efforts
• Establish a business support structure for mem-
bers of the Group
Mitsubishi Materials
Kenzai Corp.
• Instill a deeper awareness of corporate ethics and
compliance
Sambo Copper Alloy
Co., Ltd.
• Enhance lines of communication with customers
• Instill a deeper awareness of corporate ethics
and compliance
• Make risk management activities more compre-
hensive
• Reduce environmental impact
Japan New Metals
Co., Ltd.
• Maintain meticulous control of information
received from customers
JEMCO Inc. • Enhance employee training programs
Mitsubishi Nuclear Fuel
Co., Ltd.• Build an information management system
Universal Can Corp.• Reinforce environmental risk management
efforts
Mitsubishi Materials Natural
Resources Development Corp.
• Expand product and service information from the
perspective of raising customer satisfaction
Ryoko Sangyo Corp. • Enhance manager training programs
Mitsub
ishi M
ate
rials
Co
rpo
ratio
nG
roup
Co
mp
anie
s
Action Plans
Beginning in fiscal 2006, the Mitsubishi Materials Group formulated stakeholder-specific action plans and
worked steady to achieve stated targets. In fiscal 2007, efforts are directed toward activities undertaken in
line with the three-year Medium-Term CSR Direction.
Action Plan Part ic ipants in Fiscal 2006
Mitsub
ishi M
ate
rials
Co
rpo
ratio
nG
roup
Co
mp
anie
s
Progress on Fiscal 2006 Action Plans and Content of Fiscal 2007 Action Plans
Note:Achievement Status
:Plan achieved
:Progressing on schedule
:Plan more or less achieved, but some aspects have been revised
or are still being implemented
Action Plans Achievement Status Division/Company New Action PlansDepartment/Company
New Act ion Plan Part ic ipants in Fiscal 2007
Mitsubishi Materials CSR Report 20069
Compliance and Risk Management
Legal compliance is an obviously essential condition of successful CSR for the Mitsubishi Materials Group.
Fulfilling the ethical obligations placed on us by society is just common sense and equally as obviously essen-
tial. We systematically address compliance and risk management issues. We expect all employees to be high-
ly conscious of these issues and to uphold strict standards in the execution of assigned business tasks.
Training SeminarsWithin the Mitsubishi Materials Group, a variety of semi-nars are conducted on an ongoing basis to instill awareness of CSR. In fiscal 2006, CSR seminars were held for persons in CSR-related positions, managing CSR activities and overseeing execution of such activities, with a focus on the importance of compliance and approaches to risk manage-ment. We invited guest speakers to address participants.
We also organize sessions for risk management auditors and strive to improve the working level of crisis responses.
In addition, we arrange overseas executive seminars for representatives of local subsidiaries in China, Southeast Asia, Europe and the United States. At these seminars, we run CSR exercises and discussion groups on overseas risks and methods for handling risks specific to operations out-side Japan.
We plan to provide learning opportunities utilizing vari-ous communication tools, including e-learning.
Establishment of In-House Reporting SystemIn December 2002, we opened the Internal Contact Office, which accepts comments and reports of concerns from all employees, including those of Group companies. Paralleling the April 2006 introduction of the Whistleblower Protection Act, we established an external office as well, so that employees have the option of directing their concerns through two different channels.
We take care to protect the identity of people submit-ting reports and make every effort to prevent any adverse repercussions so that individuals will not fear reprisals in the workplace for expressing their concerns. We want this reporting system to help resolve issues of improper behav-ior as quickly as possible.
Seven reports were directed to the Office in fiscal 2006.
Risk Management ActivitiesRisk surveys are conducted for each company of the Group every year, and specific risks for that year are determined, based on such factors as the probability of the occurrence of an incident and the scale of damage of such a situation, which respective surveys have highlighted. Subsequent risk analysis and evaluation of results help in drafting risk responses, which undergo audits by risk management audi-
CSR Managementtors. Updates on the status of risk control measures are provided to the executive team on a regular basis.
Companywide risk themes that will receive special atten-tion in fiscal 2007 are presented below.
We will maintain prudent risk management practices to prevent risk from materializing.
Crisis Management SystemIn recent years, the causes of crises that surround business-es have become increasingly complex, requiring companies to take measures that extend beyond conventional situa-tions, such as natural disasters and man-made accidents, to include acts of terrorism and the outbreak of infectious diseases.
In January 2006, to achieve a suitable first response to anticipated crises, we reinforced the Groupwide crisis man-agement structure, which connects in-house companies and business divisions as well as corporate divisions, par-ticularly the General Affairs Department. We reorganized and determined a contact route for communications, and secured lines for gathering information, through the estab-lishment of a task force, approaches for in-house units and actual data collection on overseas crises through several organizations, to ensure appropriate responses.
We will continue to strengthen efforts throughout the Group to achieve total crisis management capabilities.
CSRCommittee
Formulate risk management
policy and annual plans
Review
and improve
RMS
Identify overall risks
Provide instruction,
conduct
training seminars
Offer assessment support
RMS* Audit
Pinpoint areas
for improvement
*RMS: Risk management systems
■Risk Management PDCA Cycle
■ Fiscal 2007 Groupwide Risk Themes
• Environment risk
• Marketing and sales risk
• Information systems risk
• Production and facilities risk
China Executive Conference, held in Shanghai
■ Fiscal 2006 Seminar Attendance
• CSR Seminars and Training: 855 • Risk Management Auditors Training: 23• Overseas Executive Seminars: 69
Mitsubishi Materials CSR Report 2006 10
situation, and we acknowledge our accountability. We solemnly accept the judgment as meted out and will in the spirit of sincerity continue to work for reconciliation with all condominium owners at OAP. Moreover, with our genuine respect for corporate social responsibility, we will sincerely carry out the works on the environmental mea-sures at the site so OAP residents can live there without any future worry.
The Akita Refinery processed zinc for 43 years, between 1953 and 1996.
In 1989, groundwater at the site was found to be con-taminated, so observation wells and pumping wells were installed and efforts were undertaken to prevent the dis-persion of contaminants outside the site and to clean the water.
The removal of old smelting and refining equipment was completed in 2005. Measures to clean the water had also progressed by then, so in June 2006, Mitsubishi Materials initiated an environmental audit using the 38 existing on-site wells to ascertain the status of ground-water over the entire site. The survey revealed cadmium, arsenic and other contaminants over the whole area, but the concentration of cadmium was particularly high, at three times the environmental standard, in the observation well adjacent to a residential zone. The results of the sur-vey were reported to the local authorities and disclosed to residents living nearby.
No problems have occurred outside the boundaries of the old refinery site. This was confirmed by a water-quality survey implemented by a local health center in August 2006, at 11 wells—two for drinking water and nine for non-potable water—in residential zones within a 500-meter radius of the old site.
We will continue to run surveys and add observation wells. We will study measures to promote water cleanup and effectively prevent the diffusion of contaminants, and we will implement the appropriate measures.
At Mitsubishi Materials, some equipment handles prod-ucts containing asbestos. Therefore, the Company made asbestos-related health problems a CSR priority, quickly established a task force dedicated to asbestos issues and formulated a basic policy covering the use of products containing asbestos as well as health counseling. Based on this policy, we seek to control the use of asbestos and promote alternatives. We also conduct health checks for employees and retired workers, and we strive to respond swiftly and accurately to requests for advice and information.
We are now taking these efforts, underpinned by the basic policy, to Group companies.
Health Problems from Asbestos
Major Issues Regarding the Group
We offer our heartfelt apologies to all concerned par-ties, especially the owners of condominiums at the Osaka Amenity Park (OAP), for the undue stress, worry and inconvenience caused by soil and groundwater contami-nation at this site.
OAP, a complex comprising a hotel tower, an office tower and condominium towers, was undertaken jointly by the Company, Mitsubishi Estate Co., Ltd., and other corporate participants, to redevelop the idled Osaka Smelter & Refinery. In the absence of any laws or regula-tions stipulating measures to deal with soil contamination at the time the project broke ground in 1992, we imple-mented the technical measures deemed necessary, based on provisional guidelines issued by the Japanese govern-ment in 1986 on soil pollution controls for state land des-ignated for public use.
However, in 1997 heavy metals were discovered in spring water seeping into underground structures at OAP. In response, we introduced a control mechanism to lower concentration levels in the water before discharging it into the public waterworks system. When the volume of spring water increased in 2002, we considered a more comprehensive approach to the situation, leading to the January 2003 installation of treatment facilities designed to remove heavy metals.
In September 2002, we released a statement to the public acknowledging soil contamination at OAP and describing our efforts to remedy the situation. A subse-quent assessment of surface-level pollutants confirmed that soil in some sections of the site exceeded govern-ment-mandated limits on heavy metals content, and in 2003 we replaced the topsoil in sections approved by con-dominium owners for remediation.
In addition, on January 29, 2006, Mitsubishi Materials and other corporate participants concluded an agreement with the condominium management association at OAP concerning the environmental measures to be taken at the site, based on the basic plan drafted by the technical evaluation forum consisting of academics and other spe-cialists in 2005. The work commenced on June 12, 2006, and will last for 19 months.
We also signed a letter of confirmation on May 8, 2005, with the condominium management association regarding monetary compensation. We negotiated with the condo-minium owners individually, using the letter as a guideline, and have so far reached agreements with more than 90% of the owners.
On June 10, 2005, the Osaka District Public Prosecutors Office dropped charges against Mitsubishi Materials and former executives of the Company regarding alleged vio-lation of the Real Estate Business Law by not informing buyers of units in the OAP condominium towers regarding important matters, including the fact that spring water was contaminated with toxic substances, at the time the units were sold. However, the Company was ordered an administration disposition by the Tokyo Metropolitan Government, which has jurisdiction over the Company on the said Law, forcing the Company to cease real estate operations for two weeks from June 20, 2006.
We are acutely aware of the fact that we invited this
Soil and Groundwater Contamination at Osaka Amenity Park
Groundwater Contamination at Akita Refinery
Mitsubishi Materials CSR Report 200611
Financial Highlights
The establishment of a stable earnings structure, built on core operations, is essential to the survival of a
business.
Seeking to reinforce core business composition and lay a foundation for growth into the future, Mitsubishi
Materials formulated a consolidated medium-term plan for the Mitsubishi Materials Group. Consistent efforts
led to the achievement of stated goals a year earlier than anticipated.
The operating environment for the Group was character-ized by persistently high prices for metals, including cop-per, and generally favorable demand for core materials and components, supported by a positive shift in demand
for automotive-related products and recovery in demand for construction-related products. Concerted efforts to strengthen profitability under these conditions led to con-solidated net sales of ¥1,143.7 billion, operating profit of ¥69.0 billion, ordinary income of ¥80.8 billion and net income of ¥58.8 billion in fiscal 2006.
Business Performance
Net sales (million yen)
Operating profit (million yen)
Net income (loss) (million yen)
Net assets (million yen)
Total assets (million yen)
Number of employees
Consolidated
Non-consolidated
Consolidated
Non-consolidated
Consolidated
Non-consolidated
Consolidated
Non-consolidated
Consolidated
Non-consolidated
Consolidated
Non-consolidated
1,046,807
522,238
10,872
11,136
△ 61,316
△ 40,895
206,413
226,853
1,575,739
1,034,372
22,381
5,885
964,726
510,104
34,429
13,547
△ 26,854
△ 26,700
174,381
203,210
1,439,985
982,714
21,745
5,475
948,238
487,585
43,422
14,306
△ 5,324
4,434
183,886
219,071
1,435,115
1,040,394
20,930
5,162
984,777
531,246
54,085
21,522
16,374
6,135
196,902
223,675
1,420,825
1,043,306
19,638
4,904
1,143,700
601,362
68,982
21,432
58,803
7,355
303,560
262,659
1,609,446
1,078,576
19,020
3,744
2002 2003 2004 2005 2006
■ Five-Year Review of Selected Financial Data
(Consolidated)
02002 2003 2004 2005 2006
300
600
900
1,200(billion)
02002 2003 2004 2005 2006
20
40
60
80(billion)
-802002 2003 2004 2005 2006
-40
0
40
80(billion)
02002 2003 2004 2005 2006
500
1,000
1,500
2,000(billion)
■ Net sales ■ Operating profit ■ Net income (loss) ■ Total assets
Japan83.5%
Asia8.0%
U.S.A.7.0%
Europe1.2% Others
0.3%
Metals31.4%
Aluminum12.5%
Electronic Materials & Components
6.6%
Others22.2%
Cement14.4%
Advanced Materials & Tools12.9%
Note: The net sales ratio is calculated based on net sales excluding internal sales between segments.
■ Net Sales by Geographic Segment ■ Net Sales by Business Segment
Mitsubishi Materials CSR Report 2006 12
Management Report
Reinforce Stability
Revitalize Corporate Atmosphere
Promote CSR Reinforce consolidatedmanagement
Enrich personnel training
Sharpen Cost Competitiveness
Expand into Growth Fields
Foster autonomy of
in-house companies
Promote business
restructuring
Improve financial
standing
M a k e b u s i n e s s
more efficient with
sophisticated use of
advances in infor-
mation technology
Cut costs through
greater cooperation
among marketing,
development and
production opera-
tions
Trim distribution and
raw material costs
Invest management
resources into auto-
motive, information
electronics, and en-
vironment and recy-
cling fields
Enhance develop-
ment capabilities
Encourage global
expansion
Establish foundations for growth: Stabilize earnings structureand lay foundations for growth that maximize composite management capabilities and ensure survival in core businesses.
Fiscal ’04-’05 Fiscal ’06-’07 Fiscal ’08
Consolidated Medium-Term Management Plan
Business Restructuring
Promote business restructuring reforms
Numerical Targets Early Achievements
Ordinary income ¥60 billion ROA above 4% Balance of interest-bearing debt ¥700 billion
¥80.8 billionabove 5.0%
¥691.3 billion
Fiscal ’07 Medium-Term Goals Fiscal ’06 Results
Enhance financial standing
Sharpen cost competitiveness
Establish foundations for growthSuperior business group
Rolling Plan
Mitsubishi Materials formulated a medium-term manage-ment plan for the Group that covers two fiscal years, com-mencing in fiscal 2006 and is implementing the strategies outlined in this plan.
The goals of this corporate blueprint were to stabilize the earnings structure by strengthening core businesses and to utilize the core technologies and infrastructure accumulated in our core businesses to establish founda-tions for growth in these domains to ensure corporate survival as we—the Group as a whole—work toward our objective to be a superior business group. Toward this end, we prioritized efforts to reinforce stability, expand into growth fields and sharpen our cost competitiveness.
We set numerical targets for fiscal 2007: consolidated ordinary income of ¥60 billion, a return on assets (ROA) exceeding 4% and a reduction in interest-bearing debt to ¥700 billion. To encourage progress, we created a rallying mini-slogan, “We can do 600.” (The “600” refers to our ordinary income target of ¥60 billion, which translates as “¥600 hundred million” in Japanese.) Concerted efforts throughout the Group, buoyed further by favorable exter-nal conditions, enabled us to reach all of our targets a year ahead of schedule.
Although we accomplished our stated goals, we will use fiscal 2007 to reach greater heights. We will acceler-ate efforts geared toward stronger core businesses and the cultivation of new business fields utilizing the core technologies and infrastructure of core businesses to establish a resilient earnings base that consistently yields profits even if external conditions change.
Specifically, we will enhance integrated business devel-opment—from raw material procurement to production, processing and sales—within the Group, and, by investing in and reorganizing companies under the Group umbrella,
we will raise the value of our overall activities and estab-lish a firm position in each business domain.
We will concentrate the Group’s core technologies into the automotive, information electronics, and environment and recycling fields, which we have tapped as the Group’s growth segments, and allocate management resources specifically toward R&D in these segments to bring high-value-added products to market as quickly as possible.
To improve our financial standing, we will further reduce interest-bearing debt. We will also continue our process of rationalizing and realigning unprofitable opera-tions within the Group and restructure business activities.
In addition, we will promote Groupwide purchasing of fuels and raw materials as well as expanded use of recy-cled fuels and raw materials. Through labor-saving pro-duction processes, underpinned by improved productivity and enhanced production processes, we will trim manu-facturing costs, and through a solid CSR commitment, we will contribute to the sustainable development of people, society and the Earth, cementing our position as a trusted organization and fostering higher corporate value overall.
■Priorities and Targets for Consolidated Medium-Term Management Plan
■ Basic Concept of Consolidated Medium-Term Management Plan
Achieving Consolidated Medium-Term Management Plan
Cement is a basic material for building social infrastructures, such as roads, rail-ways, airports, drainage systems and high-rise buildings, and Mitsubishi Materials has established a formidable presence in the cement industry with a comprehensive array of front-running technological inno-vations. Of note, we led the industry in adopting the suspension preheater system, a clinker burning system that delivers tre-mendously higher energy-savings than any other system.
A strong spirit of innovation for the future permeates cement operations today and drives our efforts to expand and strengthen the scope of our business. We pursue opportunities in the Pacific Rim, especially in China, Southeast Asia and the United States, where booming construction activity has spurred demand for cement. In Japan, we undertake joint development of mines to secure long-term access to raw materials. We have also installed an addi-tional power-generating plant at our own facilities in an effort to achieve real cost cuts.
Of note, high-performance cement, which makes stronger concrete than con-ventional cement and facilitates construc-tion of concrete structures, has captured
increasing market interest in recent years. Demand for this product is particularly high
for use in sky -scrapers and large-scale
civil engi-n e e r i n g projects.
As a pioneer in the production of high-performance cement, as well, Mitsubishi Materials will strive to ensure a stable sup-ply of high-quality products.
Efficient Use of Cement Production Processes for Waste-Processing BusinessThe production of cement requires an ultrahigh temperature—1,450˚C—and consumes a large amount of energy. The resulting carbon dioxide (CO2) emissions obviously have an impact on the environ-ment. However, this high-temperature pro-cess ensures to render waste into a harm-less form.
The composition of key components in most inorganic wastes and ashes of organ-ic wastes is close to that of natural cement raw materials, and therefore, the cement industry can reapply organic wastes as sources of fuel and waste as cement raw materials, without generating secondary waste. This facet of cement production makes it unique among other industries. Mitsubishi Materials’ Cement Company uti-lizes this characteristic to give new purpose to a spectrum of wastes, ranging from coal ash from thermal power plants to sew-age sludge from wastewater treatment facilities. We aim to use 400 kilograms of wastes for every ton of cement produced.
We will continue to promote develop-ment of original technologies that support the formation of a resource-recycling soci-ety in Japan, and, as we seek to elicit maxi-mum synergy between these technologies and the recycling techniques already used in our refining operations, we will strive to achieve sustainable business expansion while conserving natural resources and extending the life of Japan’s limited wastes disposal sites.
Cement Company
1. High-performance cement
2. Next-generation multifunction building materials
3. Soil stabilizers
4. Aggregate
Mitsubishi Materials CSR Report 200613
Emphasis on Waste-Processing Business in Formation of Resource-Recycling Society
Our Goals
At Mitsubishi Materials, we believe that fulfilling CSR in core businesses is our No. 1 priority. Since Group activities stretch across many
different business domains, the required CSR response is diverse. However, a common thread—the corporate philosophy “Our Goals”—
runs through all activities and guides the entire Group in its efforts to address the needs of society. Together, we pursue innovative
R&D and promote efficient production and supply structures while working toward the establishing of a resource-recycling society and
reduced impact from operations on the environment. Through these efforts, we will indeed contribute to people, society and the Earth.
We meet the varied and high-level needs of
customers with such high-performance cements
as low-heat cement, which has the ability to limit
cracking in large mass-concrete structures, and
silica fume cement, which boasts super-strength
and workability indispensable to the construction
of skyscrapers.
1. High-performance cement
MOISS, developed with Mitsubishi Materials Kenzai
Corp. and Mitsubishi Shoji Construction Materials Corp.,
has attracted attention on two fronts: (1) as a durable
building material for interiors that absorbs volatile
organic compounds and excess moisture in the air,
offers excellent formability and withstands earthquakes;
and (2) as a product with recycling potential.
2. Next-generation multifunction building materials
To effectively maximize the use of l imited
land, Ube-Mitsubishi Cement Corp. created
“U-Stabiller” a cement-based soil stabilizer that
helps to solidify foundations formed by landfill
operations, such as those at Tokyo International
Airport and Kansai International Airport.
3. Soil stabilizers
Aggregate is used in large quantities as roadbed
material and as a component of asphalt pave-
ment. It is also used as a secondary cement
product and added to fresh concrete. High-quality
control standards ensure the durability of con-
crete and paved roads made with our aggregate.
4. Aggregate
Suspension preheaters at Kyushu Plant
Michio Fujita
President,
Cement Company
Mitsubishi Materials CSR Report 2006 14
Company Report
The Cushenbury Plant, operated by Mitsubishi Cement, is locat-ed in California’s Mojave Desert, about 200 kilometers east of Los Angeles.
Here, in the desert, protecting the environment is a critical operating challenge. Mitsubishi Cement Corp. naturally works to meet all environmental criteria and also undertakes green-ing at the pits where limestone was quarried for use in making cement. To identify plants appropriate to the desert landscape, the company entrusted propagation of about 80 different seeds to students at nearby Victor Valley College.
Also, to prevent damage to newly planted vegetation by squirrels, rabbits, deer, Bighorn sheep and other wildlife that inhabit the desert land near the cement plant, Mitsubishi Cement Corp. has cast an extensive safety net over the area.
セメント事業のリサイクルGreening at Limestone Quarries (Mitsubishi Cement Corp.)
Recycling is extremely important in the effort to conserve natu-ral resources. With this in mind, we utilize combustible waste, such as used plastics, old tires, wood chips and waste oil, as fuel alternatives.
The average fuel alternative ratio for our four cement plants is around 15%. We aim to raise the ratio to 50% as the average target through our four plants. The Yokoze Plant, in Saitama Prefecture, has already achieved 50%. Toward this end, we have assigned people to collect information on alternative fuel sources, and we have established a national marine transporta-tion network as well as a system to ensure stable procurement of wastes.
In April 2006, the Aomori Plant installed equipment for pro-cessing used plastics. Now all four cement plants have the same kind of facilities for converting used plastics into fuel for cement manufacturing.
We are also promoting the installation of equipment at all
cement plants to enable these facilities to accept deliveries of fuel alternatives with a high chlorine content. Typically, a high chlorine content makes this type of waste difficult to process.
We prioritize the provision of top-quality products. We will promote to develop processing technologies that underpin qual-ity while meeting strict waste processing criteria, and we will encourage greater use of fuel alternatives.
02468
101214
2001
7
2002
8
2003
8
2004
10
2005
13
2006
1416[%]
セメント事業のリサイクルSeeking Fuel Alternative Ratio of 50%
The challenges inherent in processing wastewater sludge—essentially, community sewage—represent a persistently press-ing issue for local governments. Mitsubishi Materials solves this problem by using wastewater sludge as an alternative to clay, which is used in cement production.
Our processing method—a proprietary direct sludge charging system that obviates the need for pretreatment, such as drying, at the sewage treatment plants—is completely closed, from waste pickup to use in the cement kiln. We have extended the technology to the cement plants of other companies to encour-age wider use of wastewater sludge as cement raw material throughout Japan.
We have increased incoming deliveries of sewage sludge to about 120,000 tons per year—the highest volume of any other company in Japan—and we are working to boost capacity even further. The Kyushu Plant expanded its facilities in January 2006, followed by new installation at the Iwate Plant in April 2006, and the Aomori Plant is currently considering the installation of
processing equipment.We aim to raise the alternative ratio of fuel and raw material
used in cement production, which enables us to help preserve consumption of natural resources and to protect the natural environment.
02468
101214
2002 20062001
7
10
2003
11
Local governments
2004
11
2005
1312
16[10,000 tons]
Privatecompanies
セメント事業のリサイクルPromoting Wastewater Sludge as Raw Material
■ Incoming Deliveries of Wastewater Sludge
■ Fuel Alternative Ratios
Mitsubishi Materials CSR Report 200615
Electrolytic copper is produced from smelting by
electrolytic refining at the Naoshima Smelter &
Refinery, in Kagawa Prefecture, and Onahama
Smelt ing & Ref in ing, in Iwaki, Fukushima
Prefecture, and overseas, at PT. Smelting in
Indonesia.
1. Electrolytic copper
Oxygen-free copper from Mitsubishi Materials
meets the world’s highest standard and enjoys
a global share of 30%. High-performance alloys,
featuring oxygen-free copper, are used by
Mitsubishi Shindoh Co., Ltd., a Group company, to
make semiconductor lead frames and automotive
terminals and connectors.
2. Oxygen-free copper
The Naoshima Smelter & Refinery processes and
refines scrap, rough metal and electrolytic slime
generated through copper smelting to harvest
precious metals, such as gold, silver, platinum
and palladium. Gold is formed into ingots of at
least 99.99% purity and sold for industrial use or
jewelry-making applications.
3. Precious metal ingots
Mitsubishi Materials’ high-performance copper
alloys, used extensively as materials for semicon-
ductor lead frames, have earned high marks as
a key material for raising the reliability of semi-
conductors, facilitating higher density and cutting
costs.
4. Lead frame materials
Copper is an indispensable metal for modern times. It is used in a wide range of applica-tions, from electric wires to household appli-ances, such as air conditioners, and further to building components and materials, semiconductor lead frames and automotive terminals and connectors.
Mitsubishi Materials’ history in the met-als business began in 1873, with the pur-chase of the Yoshioka Mine, in Okayama Prefecture, by the Company’s predecessor. More than a century has passed since then, and the business has undergone many changes.
The development of mass production technology for oxygen-free copper and cop-per alloys—with ultimate electrical conduc-tivity—in 1966 marked the beginning of our contribution to the dramatic growth posted by the semiconductor industry.
In 1991, we started to invest in overseas copper mines and established a structure to support the stable, long-term and eco-nomical supply of copper concentrate from sources around the world.
Today, in addition to our global presence in procuring ore, refining it and process-ing it, we devote energy toward recycling operations that underpin the formation of a
resource-recycl ing society. Particularly, we apply refining
expertise to extract reusable materials from automotive shredder residue. We also draw on our strength as
the only metals company with an in-house cement division to give copper slag, gypsum and other waste from met-als operat ions another use as raw materials for cement produc-
tion. We have a proprietary system to handle this waste and reuse it.
Mitsubishi Continuous Smelting and Converting ProcessIn a resource-recycling society, manufacturers must strive for higher production efficiency and reduce the impact of operations on the environment.
Mitsubishi Materials has done exactly this in its metals business with the Mitsubishi Continuous Smelt ing and Converting Process—the Mitsubishi Process. This is the world’s first continuous-smelting method for copper. It is highly efficient and nonpolluting. The Company has extended the technol-ogy to smelters in Japan and around the world, including operations in Canada, India, Indonesia and South Korea.
We confirmed the practicality of this pro-cess at the Gresik Smelter & Refinery of PT. Smelting in Indonesia, and by promoting its environment-friendly quality, we expect to see the technology embraced more fully around the world.
In cooperation with Dowa Mining Co., Ltd., we will install a Mitsubishi Process S (Smelting) Furnace at the Onahama Smelting & Refining Co., Ltd., a Mitsubishi Materials subsidiary in which Dowa Mining has a stake, in 2007. This investment will lessen fuel consumption while raising the volume of ore processed and the amount of recycled materials accepted for use as raw materials.
We will emphasize environmental pro-tection, and as a leading company and a member of ICCM* we will strive to reduce environmental impact from our operations through the promotion of greening activities and maintenance and strict management of closed mines.
Metals Company
Utilizing Refining Technology to Devise New Waste Treatment Methods
*ICCM: International Council on Mining & Metals An organization, comprising 15 of the world’s top mining and refining companies.
Full view of Naoshima Smelter & Refinery
1. Electrolytic copper
2. Oxygen-free copper
3. Precious metal ingots
4. Lead frame materialsToshinori Kato
President,
Metals Company
Mitsubishi Materials CSR Report 2006 16
Company Report
The Naoshima Eco Town Project is recognized by the national gov-ernment as a community effort to originate and cultivate progres-sive recycling industries that will help to realize the formation of a sustainable resource-recycling society.
Through the Naoshima Smelter & Refinery, which was estab-lished in 1917, Mitsubishi Materials enjoys a relationship with the town of Naoshima that runs historically deep. In 1999, this relation-ship was reinforced with a request from the prefecture to install equipment at the smelter/refinery for intermediate processing of materials from the site of illegal dumping on Teshima, another island in the Naoshima chain. Since then, the smelter/refinery has been active in resource recovery using on-site facilities as the Naoshima Eco Town recycling project.
Mitsubishi Materials sees waste with recycling potential as an “urban mine” in Japan. The Naoshima Smelter & Refinery’s efforts to recover metals contained in waste include the use of equipment that turns molten fly ash into new raw materials and the operation of recycling facilities that extract valuable metals by preprocessing
shredder dust and other industrial waste. Currently, processing volume is expanding at a pace that exceeds
original plans. The smelter/refinery will continue to work with the local government and with citizens to achieve eco town objectives.
As an offshoot of the eco town initiative, the Naoshima Smelter & Refinery welcomes the general public to its recycling facilities for tours, which not only contributes to environmental learning but also opens lines of communication with the community, which
helps promote understand-ing of the operations.
セメント事業のリサイクルNaoshima Eco Town (Naoshima Smelter & Refinery)
When undertaking operations overseas where economic con-ditions are not necessarily opportune, local job creation and continuous employment are extremely pressing concerns. PT. Smelting, a Mitsubishi Materials subsidiary in Indonesia, employs 500 full-time staff, about 95% of whom are hired locally, as are nearly 100% of the 800 staff from partner companies who are employed at Pt.Smelting Through PT. Smelting, we support development of the local economy through job opportunities.
PT. Smelting offers youth groups from neighboring villages suggestions for establishing and running businesses and pro-vides assistance for launching projects to pick up and dispose of solid waste—lumber and paper—from the company’s own operations.
These efforts are not a form of temporary economic support but rather a means toward amicable, long-lasting partnerships. This community commitment has earned high marks from vil-
lage leaders and citizens and has fostered a recognizable pres-ence in the area.
PT. Smelting also undertakes conventional philanthropy, with clear-cut objectives, such as expanding schools, donating books and organizing foreign language courses.
セメント事業のリサイクルEnergizing the Indonesian Economy
Shredder dust is what remains when old cars and consumer elec-tronics, devoid of recyclable components, have been crushed in a shredder. Typically, shredder dust is dumped in landfills, but with equipment and technology gained through copper smelting and refining, Mitsubishi Materials is able to recover valuable metals (material recycling) and heat (thermal recycling) by taking shred-der dust through further processing. The Company can also pro-duce copper slag from shredder dust. These efforts exemplify our commitment to resource-recycling.
The Naoshima Smelter & Refinery and Onahama Smelting & Refining are both involved in recycling. Of note, the Onahama facility began processing shredder dust before any other domestic company and boasts the largest processing capacity as well as the best results in Japan.
A vehicle recycling law, effective from January 2005, has made automakers responsible for disposal and recycling of shredded
scraps from dismantled cars. This requirement has fostered a rap-idly growing need for businesses that handle automotive shredder dust. Our part in satisfying this need is gaining greater attention.
We will continue to promote technological innovations that lead to expanded processing, which will, at least to some degree, reduce the amount of waste buried in landfills.
セメント事業のリサイクルTurning Shredder Dust into New Resources
Naoshima island chain
Environmental learning plant tour of recycling equipment for valuable metals
PT. Smelting in Indonesia
General solid waste pickup and disposal operations by neighborhood youth groups, wearing masks to prevent inhalation of dust
Valuable metals recycling facility
Mitsubishi Materials caters to the needs of many manufacturing sectors through the provision of innovative fabricated metal products engineered with technologies and know-how accumulated over many years in the metal fabrication business.
We have earned the trust of custom-ers at home and abroad by extending breakthrough technologies in such areas as cemented carbide products for metalwork-ing—the starting point for manufacturing just about anything; powder metallurgy for sintered parts that are built into the hearts of automobiles and electrical products; high-performance alloy products—engi-neered to resist heat, corrosion and abra-sion—which are widely used in leading-edge applications by key industry and aero-space sectors; and diamond cutting tools for high-precision fabricating equipment used by the electronic and semiconductor sectors.
We have garnered a particularly solid rep-utation in the cemented carbide products business because we can ensure a stable supply of new and high-quality products to the market. This is made possible by an integrated structure that covers everything from raw materials procurement to finished
products and mar-ket-ready materi-a ls . Our solid reputation has translated into
top share of the domestic cement-
ed carbide
products market, a status complemented by increasing shares in overseas markets.
Committed to be a Value SupplierAs a value supplier to the world’s automo-tive, information technology and aerospace sectors, Mitsubishi Materials supports innova-tions in productivity by providing added value tailored to the needs of each customer.
In December 2005, we established Plansee Mitsubishi Materials Global Sinter Holding S.A. through the merger of over-seas powder metallurgy products opera-tions. In May 2006, we established a global supply structure for cemented carbide tools that hinges on a newly opened logis-tics center at Narita, near the New Tokyo International Airport.
To more accurately address customers’ needs, we endeavored to improve customer satisfaction levels. Specifically, we set up a guest engineer program through which we dispatch engineers to customers. We also launched a shared database for custom-ers’ valuable comments and requests, and introduced an e-learning system in eight languages for our sales force and marketing staff in different parts of the world.
It is the development of human resourc-es that ensures success in making products. With this in mind, we emphasize Total Productive Maintenance, a concept of Japanese origin, which is aimed at achiev-ing higher production efficiency and a stronger operating structure. We will also maintain personnel training and improve on-site capabilities and skills. These efforts will culminate in new products boasting higher quality and improved performance, and with these products, Mitsubishi Materials will support value creation in the business activities of our valued customers.
Advanced Materials & Tools Company
Supporting Customers’ Innovations in Productivity as a Value Supplier
1. Abrasion-resistant tools (photo: slot die)
2. Diamond cutting tools
3. High-performance alloy products
4. Sintered parts
Mitsubishi Materials CSR Report 200617
Abrasion-resistant tools utilize the prosperities of
cemented carbide. A slot die is used to spread
a uniformly thin layer of paste on the glass sub-
strates of liquid crystal panels.
1. Abrasion-resistant tools (photo: slot die)
As the name implies, diamond cutting tools
feature diamonds, the hardest substance in the
world. These tools are used widely by manufac-
turers, including makers of automobiles, electron-
ics and semiconductors, as well as glass and
optical products, to grind, slice and drill a wide
variety of materials.
2. Diamond cutting tools
Experience with heat-resistant materials and
precision processing technologies underpins the
Okegawa Plant’s ability to supply materials for
aircraft engines, which demand the utmost levels
of reliability and safety.
3. High-performance alloy products
Produced by bake-hardening fine metal powders
at high temperature, sintered parts are used pri-
marily in automotive engines. A single passenger
vehicle may contain more than 200 sintered
parts, which serve in basic automotive functions,
such as moving, turning and stopping.
4. Sintered parts
Cutting tools (cemented carbide drills)
Fumio Shimada
President, Advanced
Materials & Tools
Company
All Products are RoHS* CompliantRapid digitization in all industries has spurred demand for semiconductors. This situation has spawned brisk demand for silicon wafers, and Mitsubishi Materials is working to meet heightened market needs by boosting production, including enhanced capacity at Mitsubishi Polycrystalline Silicon America Corp.
We have introduced an environmental management system based on ISO 14001 and are aggressively promoting efforts to reduce waste, save energy and find ways to prevent the use of toxic or environment-unfriendly substances in our electronic mate-rials and use components employing either new technology or eco-oriented alternatives.
RoHS went into effect in July 2006, but Mitsubishi Materials was already prepared for such requirements, having embarked on the necessary responses to the then-proposed directive back in 2000 at plants in Japan and overseas. In 2004, the Company launched a green procurement system for raw materials, and today, with all prod-ucts RoHS compliant, customers around the world can rest assured that Mitsubishi Materials’ products will support manufactur-ers’ efforts to meet RoHS requirements.
Our products are used extensively in next-generation infrastructures where func-tionality and environmental efficiency are required. A prime example is an insulated board with thermal conductivity, known as direct brazed aluminum (DBA) substrates, for hybrid cars. DBA substrates are described on page 32.
We will continue to enhance the perfor-mance of our products to better meet the evolving needs of the market and thereby benefit people, society and the Earth.
Electronic Materials & Components Company
Mayuki Hashimoto
President, Electronic
Materials & Components
Company
Contributing to Global Development as a Champion of Next-Generation Infrastructures
*RoHS (Restriction on Hazardous Substances) is explained on page 25.
Mitsubishi Polycrystalline Silicon America Corp.
1. Polycrystalline silicon
2. Chemicals
3. Sputtering targets
4. Chip thermistors
Mitsubishi Materials CSR Report 2006 18
Company Report
Ultrapure “eleven-nine” polycrystalline silicon, at
99.999999999% purity, is made by Mitsubishi
Materials Polycrystall ine Sil icon Corp. and
Mitsubishi Polycrystalline Silicon America Corp.
It is used to make the single-crystal silicon on
which semiconductors are built.
1. Polycrystalline silicon
In cooperation with JEMCO Inc., a Group company
with expertise in nanocontrol technology, we mar-
ket high-quality, high-performance micropowders
and other chemicals to makers of automobiles,
displays and electronic products as well as com-
panies involved in semiconductor processes.
2. Chemicals
Sputtering targets contribute significantly to vital
film formation on semiconductor devices and
recording media, such as DVDs, because of nano-
controlled production technology. Our sputtering
targets for recording media hold the top global
share.
3. Sputtering targets
Our chip thermistors, which enjoy the largest slice
of the global pie, are used in various information
and portable communication devices, such as
computers and mobile phones. We offer a rich
lineup geared to market trends toward smaller
products with high-density architecture that
requires greater component reliability.
4. Chip thermistors
Mitsubishi Materials has supported develop-ment of the domestic electronics industry by providing key components. Today, the Company promotes technological progress in such areas as silicon, chemicals, ceramics, metal and metal alloys, and strives to create original products that utilize years of accu-mulated expertise in materials development and design techniques.
The Electronic Materials & Components Company is involved in four businesses: the silicon business, which makes polycrystal-line silicon used in solar batteries and silicon wafers—the base on which integrated cir-cuits are built; the chemicals business, which applies elemental properties of fluorine and other chemicals to the production of semi-conductors and liquid crystals; the advanced materials business, which makes such prod-ucts as bonding wire for semiconductors and sputtering targets for recording media; and the electronic components business, which includes such products as chip therm-istors for battery packs.
With great speed and efficiency, we sup-ply advanced, high-performance electronic materials and components to companies in leading-edge industries around the world, including the automotive, semiconductor
and electronic devices, and IT and consumer electron-ics sectors.
Mitsubishi Materials CSR Report 200619
Mitsubishi Materials has helped ensure a stable supply of energy in Japan for many years. Today, the Company emphasizes three energy businesses: nuclear energy-relat-ed services, which focus on R&D, design and construction of nuclear fuel cycle facilities; geothermal and hydroelec-tric power production; and fuels, to supply coal and other fossil fuels. Our main customers are members of the elec-tric power industry.
Our mission is to be an eco-friendly energy provider, so the type of coal primarily handled by the fuel department is “Envirocoal,” which generates less post-combustion ash. In geothermal and hydroelectric power production, we utilize renewable energy of geothermal and water sources. In nuclear energy-related services, we strive to recycle nuclear fuel and oversee everything from the design and construction of key processes to operational support for the reprocessing plant of Japan Nuclear Fuel Ltd at Rokkasho, a village in Aomori Prefecture.
All members of the Mitsubishi Materials Group work as one to observe laws and reinforce safety measures while
preventing global warming and reducing environmental impact from operations. And as one, we support the energy policy of Japan.
Mitsubishi Materials’ history in the gold business spans more than a century. During this time, the Company expanded its activities and is now involved in a wide range of precious metals business, including retail sales of gold bars and jewelry, the creation of commemorative products, and direct sales and dealing with buyers of pre-cious metals. Naturally, we offer products for industrial applications, but we also sell precious metals and jewelry to individuals.
We achieved particularly rapid growth in the jewelry business with a customer-oriented sales strategy that is way ahead of conventional industry practices. That is, we utilize mail order and jewelry fairs to facilitate access to our products.
Mitsubishi Gold is widely regarded as the top gold brand. We do not remain complacent with this competi-tive advantage, however, as we consistently give top priority to customer satisfaction in merchandising and improving products. To this end, we objectively analyze data accumulated from conversations with customers
at retail stores and through questionnaires, and make every effort to enhance employee education in terms of customer satisfaction.
Safe, Stable Supply of Environment-Friendly Energy
Energy Business Division
Mitsubishi Nuclear Fuel Co., Ltd., in Tokai, a village in Ibaraki Prefecture, has consistently produced nucle-
ar fuel for nuclear power plants since operations went on line in 1972, and today, output represents about
10% of all power generated in Japan. The company observes rules and regulations and works to reinforce
safety measures while responding to requests from electric power utilities—its main customer group—
by maintaining stable production and high quality. The company also aggressively embraces measures to
deal with waste from its production processes.
Nuclear Fuel Assemblies
Sales of jewelry by mail order began in
1978, and since then, the MJC brand
has become firmly ingrained in the
minds of jewelry-buying customers.
Our jewelry fairs, the largest in Japan,
are held in eight major cities.
Mail Order, Jewelry Fairs
We offer Mitsubishi Gold through several popular channels. We sell
gold bars directly to the public at six locations in Japan and also
provide the convenience of telephone order. We maintain “My Gold
Plan,” which facilitates gold purchases in monthly installments of
¥3,000 and up, and “My Gold Bank,” which enables individuals to
acquire gold but entrust it to us for safekeeping.
Mitsubishi Gold
Market-Oriented Approach Underpins Customer-Oriented Business
Precious Metals Division
Yukio Ono
General Manager, Energy Business Division
Satoshi Terashita
General Manager, Precious Metals Division
Mitsubishi Materials CSR Report 2006 20
Company Report
Mitsubishi Materials has 14 consolidated subsidiaries in the alu-minum business, including Universal Can Corp., which makes beverage cans, and Mitsubishi Aluminum Co., Ltd., which makes rolled products.
Of special note, in the aluminum can business, the Group maintains a can-to-can integrated processing system whereby used beverage cans (UBCs) become the raw material for new aluminum cans through a repetitive cycle of production, collec-tion, melting, casting and rolling. This system is unique, employed exclusively by the Mitsubishi Materials Group, and it has potential as a model for the formation of a resource-recycling society.
Under the banner “We provide eco-friendly beverage contain-ers,” Universal Can obtained permission to place two eco labels on its cans. One is the EcoLeaf, from the Japan Environmental Management Association for Industry, and the other is the EPD (Environmental Product Declaration) mark, a Type III environmen-tal label certified by the Swedish Environmental Management Council. The company also developed a universal design for a container end with easy-open features, and is currently pursuing a response to ISO 22000, the standard for food safety manage-ment systems.
Meanwhile, Mitsubishi Aluminum is working hard to lower CO2 emis-sions. To this end, the company seeks to switch fuels, moving away from heavy oil and liquid petroleum gas, which exert a major impact on the environment, in favor of environ-ment-friendly liquefied natural gas.
Group companies are all trying to limit the impact of respective opera-tions on the environment.
The Affiliated Corporations Division manages and restruc-tures the 45 companies that fall outside of the Company’s other business segments, as of March 31, 2006. The business content of these companies is diverse and includes trading and engineering expertise that supports overall corporate capabilities as well as tourist services that encourage regional growth, such as employment opportunities after metal and coal mines have closed.
Affiliated corporations need support and direction for addressing such issues as compliance, risk manage-ment, consolidated accounting and environmental concerns if they are to execute suitable and progres-sive business management. Therefore, the Affiliated Corporations Division does not engage directly in any operations but works to achieve optimum consolidated management with a support structure tailored to each company. The division extends assistance in accounting, legal affairs, personnel administration and environmental management.
Reinforcing this support structure indirectly underpins CSR activit ies through-out the Group, so the division will endeavor to take on more requests from companies under its supervision and pursue activities that provide more adequate assistance.
Used aluminum beverage cans present two ben-
efits. First, they have obvious recycling potential,
and second, recycled UBC metal uses about
3% of the energy and generates much less CO2
emissions, compared with production of cans
from new aluminum.
UBCs
Type III is the numerical representation of a
product’s impact on the environment over its
entire life cycle. Eco-labeling provides consumers
with information to help them choose products
that have the least impact on the environment.
Sweden uses the EPD mark, while Japan has the
EcoLeaf.
Type III Eco Labels
Sado Island, just off the coast of Niigata Prefecture, is a featured tourist destination in Japan. The Sado
Gold Mine, which financed the Tokugawa Shogunate (1603-1867), is now a historic site on the island and
its mineshafts are open to the public. The site is run by Golden Sado Co., Ltd. Turning the old mine into
a tourist spot has created jobs, which has been a real boon to the local economy, but it also underscores
our ongoing commitment to the environment, as we deal with the water that seeps out of the tunnels long
after the mining operations were closed.
Historic Site: Sado Gold Mine
Pursuing Eco-Friendly Activities under Group’s Aluminum Products Umbrella
Aluminum Division
Appropriate Support for Business Management Underpins Groupwide CSR
Affiliated Corporations Division
Masaharu Kubo
General Manager, Aluminum Division
Isao Iwano
General Manager, Affiliated
Corporations Division
Establishing a Resource-Recycling Society
As an ensemble of companies operating under the composite profile of a comprehensive basic materials maker, the
Mitsubishi Materials Group provides many kinds of basic materials. At the same time, the Group collects various
used products and waste generated by other industries and recycles them into reusable raw materials. In this way,
the Group reduces the amount of waste that would otherwise go to landfills and reduces its consumption of natu-
ral resources. This commitment is the cornerstone of a resource-recycling society.
Mitsubishi Materials CSR Report 200621
Resource Recycling in the Mitsubishi Materials Group
Supply
People in their daily lives
Customers
Automobiles, information electronics-related products
Automakers Household appliance manufacturers Beverage makers Construction companies
Car batteriesShredder dust
Used aluminum cans
Used household appliances
Used tires
Sewage sludge
Nonferrous metal smelter/refineriesNaoshima Smelter & Refinery and three other facilities
Household appliance recycling plantsEast Japan Recycling Systems Corp. and four other facilities
Aluminum can recycling plantsShinryo Aluminum Recycle Co., Ltd., Oyama Plant and other facilities
Cement plantsKyushu Plant and three other plants
Basicmaterials
Materials
Components
Aluminum coils
Aluminum cans
Cement
Building materials
Production
Consumption
Receipt of deliveries
Recove
ring
Wa s t e W
a s t e
Mitsubishi Materials Group
Mitsubishi Materials Group
Mitsubishi Materials CSR Report 2006 22
Company Report
In cement production, we take in and effec-tively utilize community waste such as used tires and sewage sludge from wastewater treatment facilities, as well as waste and by-products such as coal ash and slag, gen-erated by other industries. In fiscal 2006, we used more than 3.5 million tons of waste and by-products as sources of energy and raw materials. In recent years, unit consumption—that is, the amount of waste consumed to produce one ton of cement—has grown to around 330 kilograms, but we are aiming for 400 kilograms.
Recycling in the Cement Business
0
100
200
300
400
500
0
100
200
300
400
500
20062005200420032002
Weight received
[10,000 tons/year]Unit consumption
[kg/t-Ce]【Deliveries of Waste and By-Products
and Unit Consumption】
Weight received Unit consumption
357372362
384389
326338319331330
In the metals business, we recycle a variety of scrap into new raw materials. In fiscal 2006, the Naoshima Smelter & Refinery steadily increased its volume of recycled shredder dust, and Onahama Smelting & Refining started recycling fly ash. As a result, aggregate processing volume of scrap exceeded 370,000 tons. By recycling shredder dust and fly ash, which have a major impact on the environment and are typically difficult to process, we are helping to save our precious planet.
Recycling in the Metals Business
0
5
10
15
20
25
30
35
40
20062005200420032002
37.336.6
25.0
20.4
17.2
[10,000 tons/year] 【Weight of Scrap Processed】
Recycling in Aluminum Can Production
0
2
4
6
8
10
20062005200420032002
[10,000 tons/year]【Aluminum Can Recovery Weight and Sales Weight】
Recovery weight Sales weight
4.084.054.504.33
5.906.38
5.46 5.42
7.60
4.24
In our household appliances recycling operations, we disassemble four types of used household appliances—air condition-ers, televisions, washing machines and refrigerator-freezers—as well as office automation equipment, primarily personal computers. The disassembled parts are sorted and processed, and the steel, copper, aluminum, plastic, glass and other materials with recycling potential are recovered to be used again as raw materials in manufactur-ing operations. In 2005, two new recycling plants went on line, bringing our network in Japan to five, and the number of household appliances processed stood near two mil-lion, as of March 31, 2006.
Recycling Household Appliances
0
50
100
150
200
250
20062005200420032002
200
130118.7
80.5
[10,000 units/year]【Number of Used Household Appliances Processed】
91.7
*Data from the aluminum division of Hokkai Can
Co., Ltd. (now, Hokkan Holdings) is included in
sales volume, as of fiscal 2006.
Steelmakers
Power plants
Coal ash
Slag
Steel supply
Infrastructures
In aluminum can production, we aggres-sively embrace the can-to-can recycling con-cept, whereby UBCs become the raw mate-rials for new aluminum cans. UBC collection surpasses 40,000 tons each year. Through our integrated processing system for UBCs, we use less energy and lower CO2 emis-sions, two components of environment-friendly operations.
At Mitsubishi Materials, we see the annual General Meeting of Shareholders as a valuable opportunity, not only from the perspective of shareholders, who vote on important matters affecting the management of the Company, but also from the perspective of the manage-ment team, who can speak directly with shareholders.
Consequently, we send out notification of the annual General Meeting of Shareholders earlier than legally required so that shareholders have plenty of time to con-sider reports and proposed resolutions before the meet-ing. In line with such proactive information disclosure, we also post the notification of the annual General Meeting of Shareholders on our web site.
At the actual General Meeting of Shareholders, we use slides and narration in our presentations to ensure that shareholders leave the meeting with a solid understanding of the content put forward.
Seeking to reflect the opinions of shareholders who are unable to attend the meeting in person, we now offer two ways for them to add their voices to those physically present. Beginning in 2005, shareholders not in atten-dance may exercise their voting rights online in addition to the existing paper-based system.
Since fiscal 2001, we have invited shareholders to stay after the General Meeting of Shareholders for an execu-tive information meeting—essentially, an opportunity to hear about our business activities in more detail. At the June 2006 meeting, as in the past, senior management described the operating environment surrounding each business segment, the status of activities and respective management strategies, as well as progress on prod-uct and technology development, and then entertained numerous questions and comments from shareholders in the room.
We asked shareholders in attendance to fill out a ques-tionnaire to gauge the success of the executive meeting. The thoughts and impressions shared by shareholders will be reflected in future IR activities and used to enrich the content of our communication still further.
Through General Meetings of Shareholders and Executive Information Meetings
Mitsubishi Materials CSR Report 200623
With Shareholders and Investors
For Mitsubishi Materials to build a good relationship with shareholders, a deep understanding of the Company’ businesses, from
all perspectives, is essential. The General Meeting of Shareholders is, of course, an important conduit for providing information,
but we seek to enhance communication further through executive information meetings, meetings that spotlight business seg-
ments, plant tours at home and abroad, and individual contact opportunities, such as interviews. We also utilize investor rela-
tions (IR) tools and the media in a concerted effort to ensure timely information disclosure.
● What was your overall impression of this year’s executive meeting?
● Other impressions
• Business content was easy to understand.
• Would like to see this sort of executive meeting continue in the future.
• Product introductions would have been a good idea.
• Put more effort into the language used in the materials and explanations; make it easier to understand.
Results of the Executive Meeting Questionnaire (Excerpt)
As part of our CSR action plan, we seek to promote effec-tive IR activities. Toward this end, we made expanding the scope of IR information and enhancing the content of IR meetings our goals for fiscal 2006. We also established venues where we could enable audiences, especially insti-tutional investors and securities analysts, to gain greater insight into our activities, from several perspectives.
At information meetings on fiscal performance, held twice a year following announcement of annual and inter-im results, top executives highlight settlement results and outline future management direction. These meetings also provide an opportunity for participants to ask questions and voice comments directly to executives.
Since fiscal 2004, we have produced information meet-ings that spotlight a certain segment of the multifaceted operations undertaken by the Mitsubishi Materials Group. By zooming in on specific operations, we help institutional investors acquire a deeper understanding of activities in the selected business domain. The information meeting for the Advanced Materials & Tools Company in fiscal 2004 garnered such an impressive response from insti-tutional investors that we arranged another one in fiscal 2006. We used comments from people who attended the previous meeting to enhance the content of the following one, going beyond a basic description of business activi-
Through Various Information Meetings
Information meeting on fiscal performance for institutional investors and securities analysts
T O P I C S
0
5
10
15
20
12
17
11
4
1 1
[Number of responses]
Very Good Good Average Disappointing Unsatisfactory No Comment
Mitsubishi Materials CSR Report 2006 24
Social Report
Mitsubishi Materials maintains an IR page on its Japanese web site and uploads pertinent corporate information, such as fiscal results, news releases and information meet-ing materials, on a timely basis so that shareholders and investors have access to vital data whenever they need it.
While the Japanese portion of our web site is naturally more comprehensive,the English portion features transla-tions of key information to ensuretransparency and full disclosure. We are committed to providing adequate infor-mation disclosure for non-Japanese investors, particularly those abroad, through the English web site and the pro-duction of relevant materials, such as an English edition of our annual report.
To elicit an accurate perception of the current status of the Mitsubishi Materials Group, we will continue to utilize IR tools with optimum disclosure potential, and we will work to preserve management transparency in our effort to be a company trusted by all.
ties to include industry structure and growth strategies. We placed particular emphasis on the cemented carbide products business for this presentation because it appears to be of more interest to investors than any other business under the Advanced Materials & Tools umbrella.
To promote greater understanding of actual operations, we open our plants in Japan and overseas to visitors to give them a first-hand look at what we do. In fiscal 2006, we opened domestic facilities to groups of visitors on 12 occasions and overseas facilities twice.
In addition to information meetings and facility tours, we grant requests for interviews from institutional inves-tors and securities analysts at home and abroad. As exer-cises in active communication, these contact opportuni-ties allow representatives to clarify operating strategies and other facets of business and foster a constructive exchange of opinions. In fiscal 2006, representatives of the Company gave 220 interviews in Japan and visited the offices of 41 institutional investors in the United States, Europe, the Middle East and Asia.
We will maintain an active IR schedule and uphold appropriate information disclosure practices to ensure investors have a thorough understanding of the activities that make us who we are.
Through IR Tools
Plant tour for securities analysts at PT. Smelting, a copper smelting and refining subsidiary in Indonesia
English edition of our annual report for fiscal 2006
Interim business report in Japanese
Business report in Japanese
Mitsubishi Materials CSR Report 200625
We pursue activities designed to improve customer satis-faction, based on the premise that our customers rely on us to assist in their problem-solving efforts.
In October 2002, the Carbide & Tools Division opened a helpdesk, staffed by specialists in cutting and other processes, to answer questions about products and deal with technology-related concerns from all stakeholders, including the users of products as well as sales outlets and agents.
The helpdesk has been well received, particularly for its convenience, as users can call on their mobile phones from the work site where a particular situation has arisen. When the service began, we logged about 900 calls per month, but interest has grown steadily, a trend substanti-ated by the current number of approximately 1,600 calls per month. This figure does not just include first-time call-ers, which is an indication of credibility on our part and has fostered the establishment of enduring, mutually pro-ductive relationships between company and customer.
We will continue to reflect comments and requests from customers in the development of new products and rein-force activities to boost customer satisfaction to greater heights.
With Customers
At Mitsubishi Materials, customers are a No. 1 priority, and as such, we always strive to provide products capable
of generating a higher level of customer satisfaction. To deliver the quality that customers expect of first-
rate products, we endeavor to limit the content of hazardous substances in our products and promote quality
management, hinging on ISO 9001 Quality Management System (QMS) criteria. In addition, we take every possible
measure with regard to confidentiality, with the entire company working toward stringent information security.
Mitsubishi Materials’ policy on quality emphasizes a very high standard, with customer satisfaction at the core. In April 2006, we expanded the scope of this policy to facili-tate a constructive response to the RoHS Directive.*
We manufacture a wide variety of products, and our approach to quality control and quality assurance for all products hinges on ISO 9001 QMS standards. Each com-pany, business segment and office repeat a daily routine of quality enhancement and feedback analysis, and strive for continuous improvement in respective QMS and qual-ity status.
Companywide Quality EffortsHelpdesk
At the 2006 Toyota Global Suppliers Convention—a general meeting attended by the top 660 people from the 411 companies that supply Toyota Motor Corporation with parts and materials, Mitsubishi Materials’ Gifu Plant was presented with the Toyota Technology Development Prize. This prize recognizes companies whose innovative technology development has contributed to Toyota’s own product development and expanded sales.
In the case of the Gifu Plant, the award spotlighted two achievements: a drill that facilitates highly efficient hole opening and a reamer capable of executing multiple cuts simultaneously. Both were developed to Toyota’s specifications as cutting tools for antilock braking system actuators.
The award holds great prestige in the industrial world. Moreover, the Gifu Plant was the first independent toolmaker to be acknowledged by Toyota in this fashion, further substantiating Mitsubishi Materials’ technology-related expertise.
The Toyota Technology Development Prize epitomizes efforts to apply unique technology to products based on customer input. We will maintain this approach, directing concerted efforts to the development and production of tools that support improved productivity for our customers—further cementing their trust in us.
Toyota Technology Development Prize
*RoHS Directive: Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment is legislation passed by the European Union (EU) limiting the use of specific hazardous substances in electric and electronic products, effective July 1, 2006.
■ Companywide Quality Management System
Implement
Companywide Quality Policy
Companywide Quality Efforts
QMS improvement and higher product quality
Achieve
“Mitsubishi Materials will make and market materials and components that match customer requirements and satisfy customer standards for first-rate products. Quality, as it pertains to such products, will include compliance to guidelines related to hazardous substances.”
● Confirm QMS status at business offices through Companywide quality audits.
● Share cross-sectional quality information through quality-oriented meetings, such as quality manage-ment meetings and quality management presenta-tions.
● Offer quality-oriented education opportunities, such as the ISO 9001 internal auditors' training program.
● Promote quality engineering to a greater degree.
● Control hazardous substances in products.
● Utilize quality control process chart for improved process control.
● Enhance maintenance of measurement devices and apply process to measurement system management.
● Improve product and process designs, then define specifications in QMS.
● Make QMS more effective and less cumbersome by clarifying goals and eliminating needless duplication.
T O P I C S
Helpdesk
Mitsubishi Materials CSR Report 2006 26
Social Report
To ensure a constructive response to RoHS and other environmental guidelines, Mitsubishi Materials will imple-ment a Companywide approach comprising five rules for controlling hazardous substances in products. Each com-pany business segment and business office will integrate stated quality-control goals into respective QMS and strive to reinforce the countercheck system through daily man-agement and Companywide quality audits by the Quality Management Department, to prevent any backsliding on improvements achieved.
Amid heightened awareness over the importance of information security, Mitsubishi Materials has estab-lished Companywide protocols in Rules for Confidential Information Management to appropriately manage and safeguard personal information and other confidential in-house data. In addition, information control officers have been assigned in each workplace, and a system is in place to track the movement of information to and from its.
We seek to pinpoint information risk in each work-place, and we have made preparations, such as measures formulated and implemented to deal with leaks, should they occur, through a structure that calls on the entire company, including business offices, to participate in keeping information safe. Such efforts augment the activi-ties of the units responsible for information security at headquarters.
In addition to physical deterrents, such as restricted-access areas, we have embraced measures that reflect advances in information technology, including software to block unauthorized network entry as well as a variety of passwords and rules governing the use of computers. We have also conducted training programs for employees to ensure a united stand on information security and plan to continue this practice.
The handling of personal data is a top priority in infor-mation security management. Naturally, an in-house man-agement system is integral to this process, but we also strive to implement safety control steps to lessen the risk of information leaks.
In line with full promulgation of legislation to protect personal information in Japan, effective from April 2005, we enhanced structures for safeguarding and manag-ing information for in-house personnel only. We are well aware that proper application and protection of personal information is the social obligation of all companies, and to fulfill this responsibility, we post our privacy policy on our web site.
Activities designed to qualitatively improve overall infor-mation security at Mitsubishi Materials are ongoing.
Enhancing Control of Hazardous Substances in Products
Information Security and Personal Information Protection
Cement Company
Metals Company
Advanced Materials& Tools Company
Electronic Materials & Components Company
Energy Business Division
Precious Metals Division
Aluminum Division
Affiliated Corporations Division
Corporate Production Engineering Division
Corporate Production Engineering Department
Quality Management Department
Procurement & Logistics Division
Corporate Technology & Development Division
Corporate Departments
Customers
Environment Management Division
Corporate Marketing Department
Company Business Segments, Divisions
Co
mp
anyw
ide
Syst
em f
or
Co
ntr
olli
ng
H
azar
do
us
Sub
stan
ces
in P
rod
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s
Customers
● Lead
● Mercury● Cadmium
Specific hazardous substances, as defined in the RoHS Directive
Hazardous Substances in Products
● Hexavalent chromium ● Polybrominated biphenyls (PBBs)● Polybrominated diphenyl ethers (PBDEs)
2. Do not allow them into plants.
3. Do not utilize them in production processes.
4. Do not release them from plants.
5. Disclose any information about them.
1. Do not select them for use in design and as a raw material.
■ Basic Format
Personal information protection policy
■ Companywide System for Controlling Hazardous Substances in Products
Japan is facing what the media has dubbed the “2007 Problem”—reduced work site capabilities, occasioned by mass retirement of baby boomers—which will exacerbate a drain on the nation’s workforce caused by a falling birthrate. Against this socioeconomic backdrop, personnel training has gained increas-ing importance at Mitsubishi Materials.
As outlined in our medium-term management plan, we have identified corporate traits that a company of Mitsubishi Materials’ stature should possess and the kind of employees who will contribute to these qualities.
Developing employees who have the “right stuff” is abso-lutely essential if we are to achieve our management vision. To execute more systematic means for training, we have restruc-tured the Companywide program of workshops geared to position.
ConceptBasic Skills
Training
Realizing Corporate Goals/Developing Ideal Employees
Assis
tant
Manag
ers
Sta
ffN
ew
Em
plo
yees
Enab
le lead
ers
hip
in
wo
rkp
lace t
o p
rom
ote
p
rob
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-so
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tives
Layin
g t
he f
oud
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for
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thin
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and
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po
int
issues
for
att
entio
n
Co
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fo
und
atio
n
for
takin
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asks
Dependability ProfitabilityCheerful
atmosphereExcellence
Wo
rkp
lace m
anag
em
ent
and
lead
ers
hip
Belo
ng
ing
, as
a m
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of
the o
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Co
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liance b
asic
s, health a
nd
safe
ty,
haza
rd p
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n, co
op
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ting
with c
om
munity
Und
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tand
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co
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co
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manag
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and
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unting
Und
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tand
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nM
ark
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asi
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log
ical
and
critical t
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Han
ds-o
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proa
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pro
blem
sol
ving
Prob
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find
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and
prob
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Exp
ecte
d r
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pers
onal care
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pla
nnin
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Pers
uasi
on te
chni
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to fa
cilit
ate
prod
uctiv
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scus
sion
sPr
esen
tatio
ns (a
rticu
latin
g id
eas)
Business mindset, social manners, understanding of company, job fundamentals (Plan-
Do-Check-Action cycle), management elements - Quality Cost Delivery (QCD); Man,
Materials, Method, Machine, Measure (5M); and 3S, based on the Japanese words seiri (organized), seiton (tidy) and seiso (clean); marketing and accounting basics; social re-
sponsibility; and improvement-oriented attitude
Mitsubishi Materials CSR Report 200627
With Employees
Employees are a company’s most vital assets. By nurturing such assets and fostering a safer, more enjoyable work-
ing environment that motivates employees to aim higher, Mitsubishi Materials promotes greater productivity and
capacity at all work sites. This leads to improved corporate value and therefore benefits stakeholders, such as cus-
tomers and shareholders, as well.
Mitsubishi Materials revised its personnel and salary system for unionized employees, effective April 2006, to accurately reflect in its treatment of employees a fair assessment of results and performance corresponding to the roles assigned to different positions. We established two career paths.
By posting on our intranet a document on role defi-nitions, which outlines roles according to career path, job position and ability, and a document on appraisal standards, based on role definitions, and clarifying what we require of each employee, we ensure that personnel evaluations are clear. In addition, we utilize feedback from superiors on these processes to further enhance our per-sonnel system, which then serves to reinforce personnel development programs.
New Personnel and Salary SystemPersonnel Training
I was impressed by the fact that in its hiring and screening process, Mitsubishi Materials cre-ated so many opportunities to talk to its employees. This interaction enabled me to see myself performing the various tasks, and I remember thinking that I really wanted to work for this company.
After I was hired, overall training lasted just a short period, but for me and the other new employees who entered the Company at the same time, the sessions were really intense. Hands-on training in my assigned area has given me many opportunities to learn about the jobs undertaken by those involved in making things at manufacturing plants. This insight helps me figure out how I, in my role as a purchaser, can best support operations at production sites. I will tackle my job with the information learned during training firmly ingrained in my mind!
Aiming to become a purchaser who is responsive to the expectations of manufacturing plants
Kayo Kuraoka Joined company in 2006 and presently works in the General Affairs Division of the Ceramics Plant
Career Path Required Role
Generalist
A job category requiring a Companywide perspective. Individuals in this career path are expected to independently set down tasks to achieve management targets and thereby contribute to results and performance.
SpecialistA job category spotlighting a specific field. Individuals in this career path are expected to reliably execute duties under preset standards and formats and to pursue efficiency.
Awareness SurveyTo instill wider appreciation of CSR, reinforce perti-nent structures and develop the talents of employees, we executed an employee awareness survey in May 2006. The survey, designed to measure aspects that underpin work site capabilities, such as job moti-vation, communication practices, organizational structure, and awareness of safety and CSR, hinged on questionnaires distributed randomly to 601 employees.
We also interview outside parties to ascertain structural and work site capabilities from an external perspective, which pinpoints discrepancies that only a comparison of different viewpoints can deliver.
We will reflect the results in future measures to cultivate a better working environment and promote employees’ incentive to aim higher.
Corporate Goals Profile of Employees with the “Right Stuff”
Dependability
Profitability
Cheerful atmosphere
Excellence
Responsible, compliance-based conduct
Dual customer- and profitability-oriented perspective
Positive attitude
Strong sense of professionalism
■ Companywide Workshop Program (Contents)
V O I C E
Mitsubishi Materials CSR Report 2006 28
Social Report
At Mitsubishi Materials, we respect the basic rights of every employee. We seek to create a cheerful, comfortable work-place and develop employees who fully grasp human rights issues and act accordingly. Toward this end, we direct con-certed efforts toward programs, hinging on human rights promotion committees at headquarters and at each busi-ness office, for employees at each job level. We also utilize our intranet to disseminate information whenever needed and promote greater awareness of human rights.
Sexual harassment can stifle the enthusiasm of everyone in an office, not just the person directly affected, and can erode an otherwise congenial office atmosphere. Therefore, as a company, we diligently strive to prevent sexual harass-ment in the workplace and execute prompt resolution should such incidents occur. We maintain an in-house con-sultation corner where employees, including part-timers, seconded staff, temporary staff and contract employees, can obtain advice or file a complaint, as well as an external point staffed by non-Mit-subishi Materials personnel. The privacy of individuals is protected and all discus-sions remain confidential, so no one will fear reprisals.
Today, amid expanding employment opportunities, the abil-ity to juggle home and office responsibilities, such as raising children and caring for aging parents, has acquired greater importance. Mitsubishi Materials has actively tackled this issue, substantiated by programs with features exceeding legal standards. These include paid leave following the birth of a child and extended parental leave, as well as long-term absence from work, up to a year, to care for an elderly parent.
In fiscal 2006, 16 employees, including one man, took time off to care for a newborn child, and three employees took leaves of absence to care for family member.
The corporate philosophy of the Mitsubishi Materials Group is to contribute to people, society and the Earth. Employing the disabled certainly falls under this guiding principle and is important from a perspective of fulfilling CSR goals, as well.
To date, we have created work environments in which the disabled can demonstrate their talents and undertake assignments with peace of mind. As of March 31, 2006, we employed 72 disabled people, representing 1.5% of the corporate population, in several locations.
We will steadily extend employment and personnel utilization plans already in force in some areas of the Company to more divisions and business offices to ensure a Companywide approach and instill a common perspec-tive throughout the Company that employing the disabled is an integral part of social responsibility. Also by working with relevant administrative agencies and industry associa-tions, we will strive to establish sustainable work environ-ments and actively employ people with various skills and experience.
To continue to benefit from the techniques and know-how of employees who have reached mandatory retirement, we introduced a rehiring program in 2004 that gives retirees who wish to work the opportunity to hire on at a business office or affiliated company. In fiscal 2006, we brought 46 people back on to the payroll.
The Confederation of Mitsubishi Materials Worker’s Union was formed under a union shop scheme. Respect for collec-tive agreements and a sincere approach to the resolution of outstanding issues form the basis of good labor relations. It is in this spirit that we strive to develop our operations and sustain a good reputation with our unions. We also facili-tate widespread recognition of management policy and other key courses of action through dialogue, such as man-agement conferences, which offer opportunities for opinion exchange on management issues.
Employing the Disabled
Mitsubishi Materials’ long history began with mining and refining operations, and the Company has built considerable assets through these operations. Along with the benefits of growth have come problems, such as soil and water contamination at Osaka Amenity Park. Properly dealing with such problems is first and foremost in fulfilling CSR, and efforts to do so reflect a goal to take care of the earth, an objective that appears in the Company’s medium-term action plan for CSR.
As a labor union, the Federation wants greater investment in people. We want Mitsubishi Materials to focus on employees—a vital segment of its stakeholder population—and invest in more training programs to promote skills and to formulate structures that support dynamic working environments.
All employees must have a solid understanding of corporate policy and adequately perceive how their own jobs fit into the policy. They must fulfill respective roles and responsibilities properly. Indeed, they must perform their jobs with great vigor and a strong sense of purpose. This is the first step to satisfying the requirements of CSR.
The Federation will work with management to create environments that encourage employees to work with a higher aim, through the realization of CSR objectives.
Greater investment in creating environments that encourage employees to work with a serious commitment to excellence
Encouraging Human Rights Awareness
Preventing Sexual Harassment
Supporting Home and Office Responsibilities
Rehiring the Recently Retired
Labor Relations
Kenichi Ebata
President, Confederation of Mitsubishi
Materials Worker’s Union
V O I C E
Access to Benefit Package ServiceMitsubishi Materials has been using Benefit Station, a ben-efit package service, since October 1, 2005.
This service offers employees a wide selection of ben-efits at special membership rates and can be used any number of times. It fulfills a multifaceted array of lifestyle needs, from accommodations—about 5,500 locations in Japan and about 600 overseas—to fitness clubs and lei-sure facilities, and further to self-development resources, childcare and care for seniors, living support services, and better-living information.
Employees can sign up directly with the provider via phone, fax or online, thereby ensuring privacy. Between October 2005 and May 2006, more than 4,900 employees took advantage of Benefit Station.
Mitsubishi Materials CSR Report 200629
Mitsubishi Materials adheres to a basic policy that priori-tizes the health and safety of employees above all else. Every year, we set the themes to underpin health and safety management and undertake related activities at all our places of business in Japan.
We emphasized four themes in 2006:
All places of business undergo interconnected health and safety audits, which check the status of measures and key activities, based on stated themes, and indicate areas for improvement. In the event of an accident, information is shared throughout the Group via intranet to prevent a reoccurrence elsewhere.
The number of accidents has been edging down-ward over the last five years, and we intend to achieve a zero accident level by using risk assessment methods to improve equipment and operations.
For employees whose annual health checks necessitate retesting or close examination of a prevailing health condi-
[Number]
200
150
100
50
02006200219971992
Minako MorisakiClinical psychotherapist, Health Counseling Office at headquartersRising stress levels and mental health problems among work-ers emerging amid the unfolding reforms in an industrial society in transition have become a pressing social concern. In response, Mitsubishi Materials seeks to establish measures to preserve the mental health of employees through cooper-ative efforts involving the Personnel Division, the Operational Safety & Health Control Department and the Mitsubishi Materials Health Insurance Society. The Company is spot-lighting three areas:1. Multifaceted, Personal-Development Learning● For employees: Promote personal awareness and health
planning● For management: Realize the importance of mental
health activities and cooperate with relevant divisions
● For health and safety adviser: Boost ability to develop mental heath measures and provide advice
2. Format for Early Discovery, Early Response3. Use of Reinstatement Support to Avoid Long-Term
AbsenceThe Health Counseling Office at headquarters was estab-
lished to address health questions from employees and management and to extend suggestions on mental health measures introduced at all locations. In cooperation with Kokoro no Denwasodan, an external organization operating a helpline service, the Company’s health insurance associa-tion provides advice to employees and their families.
Mitsubishi Materials is committed to these kinds of preven-tative mental health efforts and will continue to help employ-ees deal with health issues.
Preventative Mental Health Efforts to Avoid Stress-Related Illnesses
Health Management
Employee Health and Safety
Employee Benefits Matched to Varied Needs
Employment Statistics
1. Establish a culture of safety through measures to pre-vent accidents with human error as a factor;
2. Promote a system for employee health and safety man-agement;
3. Promote measures to prevent occupational illnesses; and4. Promote mental health care.
(Nonconsolidated)● Average age: 41.3 years● Average service: 19.7 years● Percentage of women in management
positions: 0.27% (Three out of 1,098 management
positions)● Nominal work hours: 1,935 hours/year
● Starting salary for post-secondary-educated employees: ¥202,000/month
■ Post-Secondary-Educated Recruits (in April 2006)
● Average overtime: 24.5 hours/month per person (unionized employees)
● Percentage of paid holidays taken: 86.3%
● Number of employees taking leave to raise children: 16
● Number of employees taking leave to care for family member: 3
■ Payroll (As of March 31, 2006)
■ Number of Accidents Involving Employees
V O I C E
Full-time Employees Temporary Staff Total Employees
Consolidated
Nonconsolidated
19,020
3,744
3,294
597
Administrative Technical Total
Men
Women
21
3
41
0
62
3New
Grad
uates
22,314
4,341
tion, we implement and follow up on health guidelines and work with Mitsubishi Materials Health Insurance Society to determine ways to hinder the onset of lifestyle-related diseases.
Mitsubishi Materials CSR Report 2006 30
With Suppliers
Suppliers are vital business partners, essentially assisting us in drawing the blueprint for tomorrow. We seek to
build win-win relationships with suppliers, fulfilling our social responsibilities together while supporting envi-
ronment-oriented activities, such as green procurement. We will maintain this cooperative stance as we work to
develop our businesses.
Green procurement is an integral part of reduced envi-ronmental impact and the establishment of a resource-recycling society, and it requires the cooperation of our suppliers for such a goal to be achieved.
In fiscal 2007, Mitsubishi Materials will formulate a green procurement standard, based on the thoughts described below, and accelerate procurement activity with a firm environmental perspective through this effort, while strengthening the Company’s relationship with its suppliers.
The support and cooperation of our suppliers is imperative in every aspect of business activity. We think of our sup-pliers as partners with whom we work jointly to fulfill our social responsibility, and focus on the following activities to uphold legal and social parameters, to ensure fairness, integrity and transparency in our transactions, and to achieve win-win relationships.
Create places for information exchangeAs partners in the execution of business activities, we exchange information, including technical issues, to facili-tate communication and to reinforce our relationship.
Jointly develop raw material sourcesWe engage in joint development of raw material sources with our suppliers to supply useful and high-quality prod-ucts to society.
With revision of the Act Against Delay in Payment to Subcontractors (“the Subcontractors’ Act”) in 2003, Mitsubishi Materials has aggressively embraced measures to comply with the legislation. This compliance is further reinforced through Companywide participation in inter-nal lectures and external seminars that instruct person-nel about such reforms. This education is backed by our efforts to promote the practice of paying lump-sum settle-ments in lieu of processing individual invoices to prevent delay of full payment. This measure has been facilitated through upgrading our ordering system.
Since Mitsubishi Materials consigns the bulk of its logistics needs to logistics companies, cooperation is indispensable to ensure optimum efficiency. Together, we determine a global logistics structure that is most appropriate and effective for our diverse businesses, and work with logis-tics companies as comprehensive distribution partners who not only handle the transportation of goods, but also establish distribution centers, configure transport-manage-ment networks and setting up 3PL. *
In the area of green logistics, we cooperate with our suppliers and logistics partners to implement a modal shift—a mode of transportation with less of a burden on the environment—and seek to limit environmental impact from packaging materials.
Green Procurement
Response to Subcontractors’ Act
Hitachi Transport System is developing CSR activities to provide environmentally-friendly, high-quality services that will help make the world a better place for mankind and nature. Our CSR activities are diverse, from efforts to protect the environment, including reduced carbon dioxide emissions from trucks, to support for communities such as work experience for students, and further to the develop-ment of business environments, which make our workplaces safer, cleaner and more comfortable.
Based on Mitsubishi Materials’ policy for the 3PL distribution promotion of cemented carbide products, we have constructed a distribution center in the Shibayama area, close to the New Tokyo International Airport at Narita, and started joint distribu-tion operations to establish a consolidated inventory system for plants and coordinate a supply chain management system for shipments heading overseas.
We expect Mitsubishi Materials will enhance its social contribution through CSR activities, and Hitachi Transport System will continue to cooperate on logistics issues to supply the best services as its logistics partner.
As a business partner, Hitachi Transport System addresses logistics issues with Mitsubishi Materials
Making Logistics More Efficient
Shoji Nokuo
Division Manager, Cargo Operations
Division, International Operations
Headquarters
Hitachi Transport System, Ltd.
Communication with Suppliers
*3PL (3rd Party Logistics): Refers to a business that assumes overall responsibility for logistics activities, encompassing not only the transportation of goods but also receiving and shipping, sorting, inventory control and vehicle scheduling; also the company that actually undertakes these services.
● Dealing with suppliers • Build and operate an environment management
system • Implement audits and assessments to ascertain
content of chemical substances
● Dealing with procured supplies • Look for energy- and resource-saving perfor-
mance, recycling potential, low hazardous sub-stance content, long life of products, ease of waste disposal and low environmental impact
■ Thoughts on Green Procurement
V O I C E
Mitsubishi Materials CSR Report 200631
Future-Oriented R&D
R&D capabilities, amassed over the many years since Mitsubishi Materials’ predecessor companies were founded,
have evolved in tandem with changing times and have enabled the Company to realize the products that society
demands. In pursuing R&D activities, we are guided by this question: What developments will benefit society?
Among fuel cells recognized as power-generating devices with low environmental impact, the SOFC presents the greatest potential. Properties that support high expectations are an energy efficiency rating above 80%, through concurrent supply of heat and electricity, as well as compatibility with a wide range of fuels, long life and low cost. Of note, the SOFC is drawing considerable attention for its adaptability to a range of applications, from large-scale power systems for factories to small power sources for residential use.
The ceramic power element at the heart of the SOFC that Mitsubishi Materials jointly developed with Kyushu University and The Kansai Electric Power Co., Inc., received commendation from the Minister of Education, Culture, Sports, Science and Technology (Science and Technology Award) for fiscal 2007.
Mitsubishi Materials and Kansai Electric achieved stable operation at the rated power output for more than 1,000 hours in a 1kW system. Performance tests are now under way for practical application of the power element in a 10kW system.
Joint Development of SOFC* for Next-Generation with Kansai Electric Power
SOFC MCFC
SOFC combined cycle system
Molten-carbonate combined cycle system
PAFC
PEFC
Gas engine
Residential use
Offices and multi-residential useCommercial and industrial use
Diesel
Gas turbineMicro gas turbine
101 10 100 1,000 10,000 100,000 1,000,000
Poweroutput (kW)
Electrical efficiency (%LHV)
20
30
40
50
60
70
Large-scale thermal power
Thermal power combined cycle generation
The Mitsubishi Materials Group is involved in various businesses, including cement, copper, advanced materi-als and tools, electronic materials, aluminum, energy and recycling. The timely application of diverse and continu-ally evolving technologies to existing operations is essen-tial. From a long-term perspective, technologies are also important to new businesses that will support tomorrow’s society.
Therefore, we divide our R&D activities by function. Company development—undertaken by each in-house company—emphasizes activities that will reinforce
respective business foundations and expand the scope of business, while corporate development—undertaken by the Corporate Technology & Development Division—focuses on next-generation developments. We then promote R&D through close-knit cooperation between these complementary but separate functions, supported by Companywide development conferences, held twice a year, and smaller meetings between the Corporate Technology & Development Division and each in-house company.
Sustainable development is required to cultivate new businesses, a role assumed by the Corporate Technology & Development Division. Consequently, we selectively invest development resources in three areas—automotive, information electronics, and environment and recycling—where we can expect to achieve synergy with existing businesses.
Naturally, an awareness of safety and the environment permeates development activities at Mitsubishi Materials. We are always mindful of the RoHS Directive*1 and LCA*2 when choosing raw materials, executing production and developing processes.
R&D Structure and Policy
■ Electrical efficiencies of power-generating devices
*1 RoHS Directive: Please refer to the definition on page 25.
*2 LCA (Life Cycle Assessment): A method for evaluating the environmental impact of products and services during their respective life cycles, from raw material procurement through to manufacturing, transport, use and disposal. This method could be used to calculate carbon dioxide emissions and evaluate the effect on global warming.
* SOFC (Solid Oxide Fuel Cell): A fuel cell using solid oxides as electrolytes
■ Development Structure
(serving medium- and long-term needs)
Corporate R&D
(meeting immediate needs)
Company R&D
(cultivating basic technologies for future businesses and products)
Central Research Institute
(launching high-potential businesses)
Business Incubation Department
Naka Research Center (films, packaging, devices, process, CAE, analysis and account)
Omiya Research Center (analysis and account)
Onahama Plant Reaction Process Center (recycling and moisture reaction)
Ube-Mitsubishi Cement Research Institute Corp.Okegawa Plant, Non-Ferrous Alloys Research & Technology Laboratory
Sanda Technological Development Office
Ceramics Plant, Electronic Device R&D CenterEnergy Project & Technology Center, Naka Energy R&D Center
Other Plants and Facilities, and Subsidiaries
Corporate Strategy
Committee
T O P I C S
■ Corporate Development Function
● Cultivate new businesses, the cornerstones of new corporate pillars of operations
● Support existing businesses undertaken by in-house companies
● Enhance basic technologies, which support sustainable development
Mitsubishi Materials CSR Report 2006 32
Social Report
Intellectual property is a vital management resource for any company. With this in mind, Mitsubishi Materials stra-tegically acquires and utilizes intellectual property rights applicable to the Company’s needs. In this pursuit, we comply with relevant laws, protect our own rights and respect the rights of third parties, which are all important from a CSR perspective.
A hybrid car is an energy-saving vehicle featuring a semiconductor-based power control unit for two types of propulsion, by engine or by motor. The fuel efficiency of a hybrid car exceeds twice that of gasoline-powered cars.
Mitsubishi Materials applied accumulated basic technology to develop DBA, a heat-dissipating aluminum for semiconductor-carrying circuit boards. DBA helps ensure stable operation of a hybrid car. DBA fulfills the required functions for use in hybrid cars with the capacity to tolerate conditions of large current and boasting excellent insulating and heat-dissipating properties to protect semicon-ductors, which are vulnerable to high temperatures. The quality of DBA is highly regarded.
Hybrid cars represent the future of motorized society, and heightened concern over the environ-ment will spur demand for additional eco-qualities in these cars. Mitsubishi Materials will pursue the development of next-generation, high-performance DBA from the perspective of reduced environ-mental impact. However, our efforts will not be limited to achieving a product that merely promotes higher fuel efficiency. Our aim is to restrict, or better yet, totally eliminate hazardous substances, such as lead, and rare metals from the components and materials we provide to automakers.
Supporting Hybrid Car Development with DBA*
* DBA (Direct Brazed Aluminum): Insulated aluminum circuit boards for power modules
In-House Activities Concerning Intellectual PropertyTo maximize intellectual property, we promote a unified, Companywide approach to the management of these assets on both system and structural fronts.
Status of Patent Applications and RightsEvery year, we file more than 800 domestic patent applica-tions, primarily in the three key development fields of auto-motive, information electronics, and environment and recy-cling. In fiscal 2006, we filed for 845 domestic patents and 50 foreign patents, and we were granted patent rights on 250 applications at home and abroad, for a total of 3,455 regis-tered patents in possession.
CSR Procurement and Patent SearchesManufacturing components and materials that infringe upon the intellectual property of another company not only impacts us but our customers as well. Unauthorized use of intellectual property rights could force us to halt production and require compensation to the patentee, which would obviously erode corporate credibility and profits. In addition, our actions would cast a specter of doubt on our customers, who use components and materials from us in their own products, and they, too, would be suspected of patent infringement.
A growing number of customers have recently embraced “CSR procurement,” which makes the execution of corporate responsibility a standard for selecting a provider of compo-nents and materials. These customers require their suppliers, including Mitsubishi Materials, to enforce more stringent measures to avert violation of intellectual property rights.
In response, we established an environment that enables members of the R&D Division to check directly on the status of patent rights at the product development stage using a patent search tool on our intranet, because when it comes to developing products, we do so with the knowledge that rec-ognizing the rights of other companies is paramount.
Acquiring and Utilizing Intellectual Property
■ In-House Control of Intellectual Property
1996
1,400
Domestic Applications Foreign Applications
1,200
1,000
800
600
400
200
0
160Domestic applications Foreign applications
140
120
100
80
60
40
20
01997 1998 1999 2000 2001 2002 2003 2004 2005 2006
■ Status of Patent Applications
<Encourage invention and patent application>● Revise rules regarding inventions
<Actively acquire rights on proprietary technologies>● Find out new patent applications in the product and R&D divisions
<Reinforce rights>● Institute system for revising application content at regular intervals
after application (including foreign applications)<Prevent infringement of other companies’ rights>
● Enhance patent search process from the product development stage<Promote education about intellectual property>
● Division-specific lectures (especially for procurement and marketing divisions)● Add intellectual property instruction to position-specific training curriculum● Establish correspondence course system● Distribute information using Newsletter
Patent search via intranet
T O P I C S
We have also established a subsidiary engaged in profes-sional searches for technologies related to our own businesses to ensure that we do not infringe upon the rights of other companies.
Mitsubishi Materials CSR Report 200633
Open Lines to the International Community
With offices around the world, the Mitsubishi Materials Group strives to fulfill its role as a citizen of this great
planet earth and as corporate citizen in every place where the Group maintains a presence. Members of the Group
undertake activities in their respective communities to expand the scope of social contribution. A fine example is
our participation in a project in China that grants underprivileged children the dream of early education.
We will develop our activities further to ensure a harmonious relationship with local communities.
As good corporate citizens, Group companies in China have pursued social contribution activities deep-rooted in the local community, including participation in regional events. The geographical range of these activities, howev-er, was limited to the coast—since this is where the Group has focused its business expansion efforts—and the pros-perity fostered by sustained high growth on the coast has not reached inland, where poverty remains widespread.
Given this situation, the Group decided to take its com-munity involvement a step further—geographically—to all of mainland China.
As part of this effort, in 2005 the Mitsubishi Materials Group took part in Project Hope, a social welfare program initiated in 1989 that grants children of primary and junior high school age in impoverished districts the opportunity of an education.
For economic reasons, a compulsory education is not available in China. In addition, more than one million children are forced to drop out before graduating. Project Hope collects donations from the private sector and, in cooperation with national and regional governments and aid groups, directs these funds toward schoolhouse con-struction and repair, the purchase of pens, pencils and paper, and the gift of scholarships.
For more than 10 years, Project Hope has helped more than two million children get schooling and has built more than 8,000 schoolhouses.
In cooperation with the Project Hope Shanghai Office, the window organization of this program, Mitsubishi Materials participated in the construction of an elementary schoolhouse in the village of Tuola in Deqin County of Diqing Prefecture in southwest China’s Yunnan Province, near Tibet. The old schoolhouse, built in 1957, had become too small to hold all the students and was truly falling to pieces, with a leaky roof and partial collapse a real possibility. The local government was therefore keen
to rebuild the schoolhouse but could not start construc-tion for lack of funds.
With financial assistance from Mitsubishi Materials, the local government was able to commence construction in February 2006, and an environment conducive to active learning was ready for the students when the new school year began in September.
We will work to elicit a greater understanding of the Mitsubishi Materials Group among people throughout China by participating in more of these kinds of projects.
Building a Project Hope Primary School in China
In May 2006, I went out to the groundbreaking ceremony of a schoolhouse for primary grades in Yunnan Province. Mitsubishi Materials was involved in the project. My journey across the country from Shanghai by land and air took 10 hours and ended in a Tibetan village 2,800m above sea level. I was struck by the harsh reality of this rural area, where small children must help carry branches and tend cattle to ensure daily survival.
To me, a big-city dweller, the living and learning environments for children too poor to go to school were
unimaginably distressing. Through Project Hope, we
contribute to an improved learn-ing environment in poor districts and give children who have lost the chance of an education new hope for the future. I would like to see this activity continue.
We improve the educational environment in poverty-stricken districts
Guo LiManager, Mitsubishi Materials Corporation, Shanghai Representative Office
I want to see Diqing Prefecture’s first international project succeed
We are grateful for Mitsubishi Materials’ support for the school
Liao, Vice Chairman, China Communist Youth League (Diqing Prefecture) (right)Sinanima, Principal, Tuola Village Primary School (third from the left)
Visit to a Project Hope school site
Liao, Vice Chairman, China Communist Youth League (Diqing Prefecture)In impoverished districts such as the village of Tuola, rebuilding a dilapidated learning facility is difficult, and assistance in all areas to save the children who have lost the opportunity of an education is imperative. Tuola Village Project Hope is also the first international project to take place in this prefecture, and I absolutely want to see it succeed.
Sinanima, Principal, Tuola Village Primary SchoolThe Project Hope program has attracted interest within the village and outside the community, too, drawing great support. We are grateful for the efforts of Mitsubishi Materials in making learning conditions better and removing the obstacle to learning that our children faced.
Mitsubishi Materials CSR Report 2006 34
Social Report
Since its establishment, Mitsubishi Polycrystalline Silicon America Corporation (MIPSA) has undertaken its busi-nesses in line with a corporate policy of coexistence and coprosperity with the local community. The company, which handles semiconductor-related products, has expe-rienced challenges, frequently facing market ups and downs and the ebb and flow of changing global economy tides. But no matter how difficult the operating environ-ment gets, the company strives to keep employees on the payroll. The company works to strengthen its ties to the region through donations and fund-raising activities for local charities, such as the United Way and the Red Cross. The company also participates in school events and volun-teer clean-up campaigns in the community.
MIPSA’s long-held stance on community involvement and its actions as a hardworking corporate citizen are highly regarded. In fact, in January 2006 the company was named Manufacturer of the Year in Mobile, Alabama.
The company will not, however, rest on its laurels but rather continue to work toward greater achievements.
Mitsubishi Materials España, S.A., in Valencia, has a his-tory of nearly 30 years in the cutting tools business. Visited upon by an economic crisis that required the reconstruction of facilities, the company has since over-come the challenges of that operating environment, and today enjoys a wider scope of activities, having added drill and endmill operations to its primary insert operations. The company has expanded in size and its number of employees.
Mitsubishi Materials España prioritizes job stability and coexistence with the local community. As part of this effort, the company runs an intern program for students from the Universidad Politecnica de Valencia. By gaining in-depth knowledge on cutting tools and on-the-job-train-ing, including operation of production equipment, interns acquire greater insight into the company’s operations and way of doing business.
The intern program has been in place for several years and has scored top marks from students and the university as an opportunity for valuable work experience.
A major earthquake shook the Yogyakarta Special Region in south-central Java, Indonesia, at daybreak, on May 27, 2006. The quake exacted a heavy toll on the surrounding area, taking the lives of nearly 6,000 people, leaving thousands of people injured and destroying homes and other structures.
Hearing reports of the earthquake, PT. Smelting, our copper smelting and refining subsidiary in Indonesia, co l l abora ted w i th ne ighbor ing compan ies and immediately began arrangements for sending blankets, medicine, food and drinking water to the affected area. Four truckloads’ worth of relief supplies, brought to PT. Smelting by May 31, were safely delivered to quake survivors the next day, June 1, with company employees in attendance.
The Manufacturer of the Year Award, which we won in 2006, is presented to manufacturers who have contrib-uted to local economic development. It is given to only one company each year by the Mobile Area Chamber of Commerce, in Alabama, and recognizes a company’s sustained investment since its corporate establishment, job creation and com-munity involvement. As individuals and as a company, we will main-tain our community per-spective, ensure open lines of communication and strive to fulfill our responsibilities to the community.
The Manufacturer of the Year Award is the glue that bonds stronger relationships
I had hands-on training at Mitsubishi Materials España for about three months, and I left the intern program with an extremely good feeling about the company. I was particularly impressed with the company’s painstaking pursuit of quality and the system for sustained improvement that comes with this quality perspective. I sensed that this was a company with a strong work ethic.
I had the valuable experience of getting up close to precise quality control
The medicine provided by PT. Smelting was delivered to the earthquake-ravaged area along with relief supplies collected by neighboring companies, a n d w i t h t h e h e l p o f on-site relief organizations, distributed to the victims much more smoothly than expected. Conditions in the region were extremely dismal and so many quake survivors still need assistance. I hope that we—as a company and as individuals—can continue to provide support as contributing members of society.
We will continue our support as a contributing member of society
Sustained Social Activities in Line with Corporate Philosophy (United States)
Welcoming a Technical University Student (Spain)
Aid to Java Earthquake Zone (Indonesia)
Diego Zarzonso, 6th-year student at the Universidad Politecnica de Valencia
Katsutoshi Ueda, PresidentMitsubishi Polycrystalline Silicon America Corporation
Budi Stiawan, General Affairs Section, PT. Smelting
The root principle of business at Mitsubishi Materials empha-sizes our desire to see the formation and sustainability of a resource-recycling society—the one described in our corpo-rate philosophy and stresses that we are only the temporary custodians of nature’s forests and underground resources; that we will use these resources to support comfortable lifestyles and add value to them; and that we will return the earth’s blessings back to nature or use them again in another application.
As a large forest owner, we must work to protect the land, cultivate water sources and preserve eco-systems in these for-ests. In addition, high fossil fuel–consuming operations, such as cement and copper production, emit significant amounts of carbon dioxide (CO2) from facilities. We are accountable for these emissions and therefore have a responsibility—a vital mission—to ensure the viability of our forests in regulat-ing CO2 in the atmosphere.
Based on this view, in April 2005 we formulated a man-agement plan for company-owned forests hinging on the basic concept of improving corporate value and contributing to the natural environment through appropriate manage-ment of company-owned forests. We designated Mitsubishi Materials Real Estate Corp., a Group member, to set up a forest division responsible for implementing the plan, and formed a structure for cooperation throughout the Group. Please see “VOICE” on page 44 for details.
In June 2006, we drafted a new management plan for company-owned forests and began tackling a new set of goals. The pillars of the new plan are described below.
New Forest Management Plan: Contributing to a Sustainable Society
Material Forests: Utilizing Diverse Advantages of Forests
Mitsubishi Materials CSR Report 200635
OriginOur forestry business started with ownership and man-agement of mountain forests near the Yoshioka Mine—acquired and put into operation in the early Meiji Period by our predecessor, Mitsubishi Mining—initially to provide timber posts and fuel wood for mining operations and then later to maintain the lands.
Before World War II, extensive mountain forests were acquired, paralleling the development of coal and metal mines all over Japan. The trend continued after the war, too, until the early 1960s, when the closure of coal mines caused in-house demand for timber to decrease. The situ-ation was exacerbated by a deteriorating market for lum-ber overall, and the forestry business fell on difficult times.
Under these conditions, the Company was forced to reduce its payroll and streamline forest-related activities. While shipments of karamatsu larch for packaging materi-als continue in Hokkaido, forest management efforts have been cut in recent years to the bare minimum of already thinning operations.
FeaturesCompany-owned forests cover an area of 14,513 hect-ares, equivalent to about 11,000 Tokyo Dome-sized base-ball stadiums, and make Mitsubishi Materials the seventh largest corporate owner of forested land in Japan. Most of our forests are in Hokkaido, Japan’s main northern island, and man-made forests, through reforestation, represent 51% of total acreage. Karamatsu larch accounts for 50% of the tree varieties that grow in our forests.
Mitsubishi Materials’ presence in the forestry industry can be traced back to the Meiji Period (1868-1912). The
Company is a large forest owner—the seventh largest in Japan in terms of acreage—and strives to utilize the
various advantages afforded by forests for the benefit of society.
Origin and Current Status of Forestry Business
Hokkaido 11,541ha
*Denotes mountain forests where Mitsubishi Materials retains control
West Japan 1,684ha
Bibai
Hayakita
MoriNigori-gawa
Osarizawa
Sado
Mikobata
Akenobe
Ikuno
HogashoMakimine
NishinoTeine
Otaru
Shiraoi
East Japan 1,288ha
TOKYO DOMETOKYO DOME
Tokyo Dome x approximately 11,000 stadiums
Total 14,513ha
Forest Roles
and Expectations
Protect the land; Cultivate
water sources
Multiple-layered forest of mixed coniferous and deciduous trees
Material forestEmployee education
Natural stand
Coniferous forestEzomatsu spruce Karamatsu larch
Sugi cedar Hinoki cypress
Regulate CO2Preserve
bio-diversity
Make restful areas
for people
Types of Targeted
Forests
New businesses Packaging, construction materials, wood for furniture
Lumber
Production
Regular planting by citizens Nature trails
Parks; Wooden playground equipment
CampgroundsCSR
Activities
Long thinning period
Planting
Cut
Seed
ling
supp
ly
Sele
ctiv
e cu
t
Sele
ctiv
e cu
t
Locations and acreage of company-owned forests
Vision for management and operation of company-owned forests
New Forest Management Plan
Medium-Term Vision: Promote Notable Social Contribution through Forestry BusinessActivities: 1. Maintain sustainable forests i) Conduct appropriate forest management ii) Acquire forest certification iii) Promote tree-planting in areas that are difficult to cultivate 2. Use forests as recreational areas i) To reinforce environmental awareness ii) To encourage communication among people in the community
Mitsubishi Materials CSR Report 2006 36
Social Report
Naoshima Smelter & Refinery was established in 1917 as the cen-tral smelting and refining facility of Mitsubishi Goshi Kaisha, pre-decessor of Mitsubishi Materials. Today, as a major copper smelter and refinery in Japan, it is a vital pillar of Mitsubishi Materials’ operations and contributes to the establishment of a resource-recycling society through the receipt of industrial waste from the island of Teshima.
To implement measures more effective in compensating dam-age to nearby forests caused by smoke and other emissions from manufacturing processes, in January 2006 the facility welcomed Akira Miyawaki, professor emeritus at Yokohama National University, and an authority on phytoecology, for an on-site survey.
The comprehensive survey and analysis led to Material Forest Arbor Day on March 21, when the planting of 20,000 seedlings of 39 different tree varieties, including Blue Japanese Oak, Japanese Evergreen Oak and Japanese Chinquapin—which are native to Naoshima—marked the first step to bringing green back to 0.6 hectares ravaged by a forest fire in 2004.
Dr. Miyawaki rallied participants, including executives and employees of Mitsubishi Materials, with words that struck a chord. He said, “By selecting native varieties and interplanting them close together, you shall create a ‘Forest of Life’ to last a thousand years, a bona fide forest that withstands the harsh climate, a forest to last.”
Although we had only two months to prepare, Material Forest Arbor Day attracted about 1,400 people, including 900 attendees
who came to Naoshima from elsewhere. The scope of participa-tion was diverse, including representatives from non-government organizations, foreign volunteers and even elementary school students.
Material Forest Arbor Day was our first large-scale tree-planting event. It left participants with a definite sense of fulfillment and was a tremendous success from our point of view.
As a community-oriented corporate responsibility, afforesta-tion projects like this are designed to restore natural ecosystems. Even more than that, though, they are characteristic of Mitsubishi Materials’ CSR perspective with various value-added benefits. For this reason, we will energetically pursue more opportunities like this.
In June 2006, Dr. Miyawaki opened the Hosokura Millennium Forest Arbor Day at Hosokura Metal Mining Company, a Group member (Please see page 39).
Material Forest Arbor Day: Naoshima Smelter & Refinery
We created a bona fide forest with hometown trees
The best technology coexists with the best green environment
Akira NishikawaDirector and Executive Adviser
Feedback from Ryota Oka, Arbor Day Participant
Ryota Oka Grade 2 student at Asahijuku Elementary School in Okayama Prefecture
Akira MiyawakiProfessor Emeritus, Yokohama National University
Mitsubishi Materials has gone to great lengths to restore natural environments damaged by years of smelting operations, but the results have not reached the level the Company wants to achieve. With guidance from Dr. Miyawaki, based on research results gathered from local vegetation surveys over the past 50 years, we embarked on the Naoshima Forest Renewal Project.
The professor advocated the creation of a bona fide forest planted with trees native to this area. A bona fide forest, he said, is resilient—a disaster-preventing, environment-protecting forest that safeguards us from natural catastrophes.
The recent opportunity is a springboard for the next, and I hope to pursue more reforestation projects appropriate to the environment era with people in the community.
I can sense the pride that Mitsubishi Materials, with its business in metal smelting, feels toward these operations, in the stance the Company has taken—that is, the creation of a forest with trees native to the region, as determined through the vegetation survey—in an effort to compensate for the damage that smoke from its smelting operations has had on the surrounding environment. For the future of the human race, I hope the entire management team, guided by the decision-making power of the president and his ability to implement and uphold these decisions, will become stage directors in events that cast local citizens in the lead roles.
We certainly will support Mitsubishi Materials’ efforts to create a “Forest of Life,” a forest that serves to safeguard the people from disaster and protect the environment, and stands as a scenic landmark in the region. It is my heartfelt wish that these efforts continue, drawing the interest of citizens, government and other companies.
“Return the forest”During spring break, me and my mom and dad went to plant trees on Naoshima.
The professor said that different trees were all mixed up together. We had to treat the seedlings gently, like a baby, and wrap them in straw mats, like you bundle a baby in a blanket, and then tie the mats closed with a string so the mats don’t fly away.
On the way back home, I met a woman from Switzerland named Flurina. The scenery on Naoshima was pretty when she visited two years ago, so she came back to see it, but was surprised to see the mountains were all black. I hope she’ll come back when the mountains are green again.
Mitsubishi Materials CSR Report 200637
Environmental Conservation
Mitsubishi Materials provides a host of products for every facet of today’s world, including cement, fab-
ricated metal products and electronic materials. We are aware that the negative impact of our business
activities on the environment is relatively signifi cant. To ameliorate this situation, we apply Green Produc-
tivity Management (GPM), a program to reduce environmental impact and enhance information disclosure
practices, in our efforts to raise corporate value and contribute to sustainable development.
Mitsubishi Materials’ Environment Policy
In 1998, Mitsubishi Materials set up the GPM Commit-tee, chaired by the Chief Green Offi cer (CGO), and under the committee’s direction has actively worked to reduce the impact of its operations on the environment through such approaches as waste reduction and energy-saving processes as well as the introduction of an environmental management system.
The GPM Committee discusses a direction that activi-ties will follow over the next year and promotes the policy throughout the Company and the Group. To complement these efforts, we establish technical committees, compris-ing in-house staff with expertise in certain fi elds, to study
GPM themes that require expert input or selective respons-es, and each committee determines concrete measures for tackling individual issues. Currently, we have three active technical committees, dedicated to environmental man-agement, energy conservation and global warming coun-termeasures.
All plants and facilities strive to reduce environmental impact and independently draft objectives and numeri-cal targets refl ecting Companywide goals set by the GPM Committee as well as factors characteristic to geographical location.
To pinpoint the status of implementation efforts, we rely on regular audits by the Green Action Team, which is made up of staff with expertise in such fi elds as energy and the environment. The team also extends guidance for
GPM Structure
Mitsubishi Materials’ Environment Policy
Mitsubishi Materials is committed to sustainable social development through the supply and recycling of
basic materials essential to modern lifestyles, and toward this end tackles key issues, such as steps to pro-
mote environmental protection and the establishment of a sophisticated resource-recycling society.
As a comprehensive maker of materials, our operations are diverse, with cement, aluminum, metals and
fabricated metal products businesses. We supply many of the basic materials indispensable to industrialized
society. Indeed, our materials and products are used widely in many aspects of daily life.
The manufacturing operations undertaken by all makers of basic materials, not only Mitsubishi Materials,
are environmentally high impact. And yet, those operations also present opportunities to recycle resources
through waste processing.
By working to protect the environment and utilize resources more effi ciently in our operations, we will
play a key role in laying the foundation for an environmentally harmonious resource-recycling society.
To reach this objective, we will emphasize GPM to:
1. conserve energy and resources, eliminate waste and curb release of harmful substances, and thereby ensure clean production processes and reduced environmental impact;
2. utilize waste in new applications and expand waste-processing operations, and thereby boost resource reuse and recycling;
3. develop eco-friendly products;4. widen green procurement targets; and5. implement an environmental management sys-
tem that ensures the following: i) respect for environment-related laws and
regulations, and dedicated efforts to prevent pollution;
ii) regular review of themes and targets to achieve ongoing improvement in responses to environmental concerns;
iii) broader communication channels to commu-nities on environmental issues; and
iv) solid awareness of environmental policy among all employees and a deeper under-standing of environmental issues gained though in-house programs.
September 1, 2006 Yoichi TaguchiManaging Director & CGO
Mitsubishi Materials Corporation
Mitsubishi Materials CSR Report 2006 38
Environmental Report
improvement if an audit identifi es insuffi cient progress. Environmental performance, based on implementation
efforts, and the results of environmental audits are report-ed to the GPM Committee. In fi scal 2007, we will build on the results achieved with
GPM undertaken to date, but our emphasis will be on making GPM activities more comprehensive and establish-ing a structure for more accurate control of waste.
1. Making GPM Activities More Comprehensive: Conferences for People Who Execute Environmen-tal Management Measures
To form a stronger bond between the GPM action plan and activities at plants and facilities, we held four region-specifi c conferences for the people who actually execute environmental management activities at plants and facilities.
In April 2006, we held a Companywide conference, primarily for people who are responsible for overseeing environmental management at plants and facilities.
Fiscal 2007 GPM Tasks
■ GPM Structure
April 2006 meeting for people who are responsible for environmental management
Topics
Activities
Formulated targets for measures to prevent global warming from operations
Pinpointed greenhouse gas emission volume at logistics stage
Established a structure to control hazardous substances in our products
Participated in Eco-Products Exhibition
in December 2005 at Tokyo Big Sight
Tree-planting event at Naoshima Smelter & Refi nery
in Naoshima, Kagawa Prefecture, in March 2006
Page
43
44
26
45
36
■ Key Activities in Fiscal 2006
Fiscal 2006 Activities
■ GPM CommitteeChaired by the Chief Green Officer; sets environment-related policy and targets.
■ Green Action TeamAudits plants and facilities on environmental protection issues from a
Companywide perspective.
■ Environmental Management Managers’ MeetingChaired by the general manager of the Environment Division; drafts GPM
activity plants.
■ Technical CommitteesIdentify current status of each GPM theme and discuss related policies.
• Environmental management technical committee
• Energy conservation technical committee
• Global warming countermeasure technical committee
GPM Committee
Environmental Management Managers’ Meeting
In-house companies and divisions
In-house companies and divisions
Green Action Team
Technical Committee
Plant
s and
facil
ities
Plant
s and
facil
ities
Plant
s and
facil
ities
Plant
s and
facil
ities
Plant
s and
facil
ities
Plant
s and
facil
ities
Plant
s and
facil
ities
GPM covers a diverse range of topics and activities. In fi s-cal 2006, we narrowed the selection of to-do activities, and thereby were able to concentrate efforts in certain areas for better results.
We are particularly devoted to limiting hazardous sub-stances in our products. To ensure a thorough response to this issue, we set up a special team in April 2006 that will underpin a stronger control structure.
2. Establishing a Structure for More Accurate Control of Waste: Waste Management System
From the outset, vigorous efforts to reduce waste and promote recycling have underpinned GPM activities at Mitsubishi Materials. But we know from in-house audits that the status of our system to manage waste generated through the Group’s operations is far from sufficient in some aspects. To renew awareness regarding the impor-tance of waste management and ensure that we con-sistently fulfill our responsibility to properly process the waste our operations have generated, we established a team dedicated to waste management and embarked on the reconstruction of our in-house control structure, which extends to Group companies.
Mitsubishi Materials CSR Report 200639
1
2
Members of the Mitsubishi Materials Group are involved in nuclear fuel manufacturing, nuclear fuel cycle businesses and R&D in nuclear fuel. To reinforce the nuclear fuel safe-ty measures that underpin related operations in this fi eld, the Group has undertaken the following measures.
Nuclear Safety Management Structure
Even after mining operations have ended, mines where Mitsubishi Materials once extracted nonferrous metals, such as lead and zinc, still require attention. For example, water containing heavy metals that seeps into excavation pits from the tunnels must be processed, and piles of tail-ings—the waste generated through mining operations—cannot be left untreated. Therefore, the Company has assigned employees to its 15 inactive Company-owned mines to neutralize water that has accumulated in the pits and ensure safe maintenance of tailing piles. At some locations, wastewater treatment operations have been transferred to the Center for Eco-Mining, an organization appointed by the Minister of Economy, Trade and Industry to prevent pollution from mines.
These mine-management efforts cost about ¥1.3 billion per year. In addition to the cost burden, we systematically pursue concrete measures to mitigate the impact of min-ing operations on the environment, such as R&D to op-timize tunnel water treatment and raise the effi ciency of inherent processes and activities to bring plant life back to barren mountain slopes.
Maintaining Closed Mines
Restoring Eco-Systems
Established the Committee for Nuclear Safety Measures, chaired by the president of Mitsubishi Materials.
Designated a chief advisor for nuclear safety at Mitsubishi Materials.
【Structure】
3
4
5
Performed routine, inspections at related plants and facilities.
Note: As of March 31, 2006, such inspections had been undertaken 28 times.
Maintained active membership in the Japan Nuclear Technology Institute and participated in peer reviews of members.
Maintained active membership in the Interna-tional Network for Safety Assurance of Fuel Cy-cle Industries, an association which comprised members from 14 organizations, representing 13 countries, as of July 31, 2006.
【Activities】
Reforestation at Hosokura Mine, as of July 2006. Area reforested in fi scal 2006 covers 13,600m2 Tree-planting at Hosokura Mine in June 2006. Area covered: 1,000m2
The Mitsubishi Materials Group undertakes a variety of ac-tivities designed to restore natural eco-systems devastated by corporate operations in the past.
In fi scal 2006, we called for a professional survey, as a follow-up to a survey conducted in 2004, regarding re-forestation of the area surrounding the Hosokura Mine, run by Hosokura Metal Mining Company, in Kurihara, Miyagi Prefecture. Large-scale tree-planting programs had been implemented at this mine before, but based on the results of the second survey, we opted to use a different method—the mixed-variety, dense-planting reforestation method already tried at Naoshima Smelter & Refinery—to create a forest on barren land within the mine site. The event, which took place in June 2006, drew participation from employees and citizens.
The Hosokura Mine has prepared a reforestation plan that runs until fi scal 2010, so efforts such as the June tree-planting event will continue.
■ Nuclear Safety Measures
Mitsubishi Materials CSR Report 2006 40
Environmental Report
One way to quantify the extent of efforts to protect the en-vironment is to pinpoint the amount of funds used for this purpose, based on environmental accounting guidelines set by the Ministry of the Environment.
A breakdown of Mitsubishi Materials’ spending to protect the environment around plants and facilities in fi scal 2006 re-veals ¥2.0 billion for investment purposes and ¥3.4 billion in expenses, excluding the cost of environmental damage. The primary applications of funds were for preventing pollution and for resource recycling.
We know the fi gure for non-consolidated spending—that is, spending by plants and facilities run by the parent com-pany—so we can apply the data as a tool for effi ciently and effectively promoting environmental protection activities.
Spending to Protect the Environment
For a company to stop environmental pollution before it starts and reduce the impact of its operations on the environ-ment, every single employee must have a solid understand-ing of environmental issues and act in an appropriate, envi-ronmentally conscious manner. A cohesive, comprehensive perspective embraced by all employees is crucial to success. Therefore, we require each plant and facility to conduct environment-related training for its employees independently, based on ISO 14001. We augment this approach with other opportunities, such as new-recruit seminars and an ISO 14001 internal environmental auditor qualification course presented by head offi ce staff.
Concrete issues that arise in certain business scenarios pro-vide the content for customized learning programs offered by in-house staff. We believe this method allows participants to grasp the connection between the environment and re-spective daily business tasks more easily than if the content is unrelated to their own work situations.
In addition to lecture-type programs, we post environ-ment-related education materials on our intranet and make environment-oriented information available to employees.
Our next steps will be to provide environment learning opportunities that take advantage of various in-house train-ing programs geared to specific job positions, to distribute environment-related news to all employees, and to offer training to upgrade the capabilities of internal environmental auditors.
In-House Environmental Education
Internal Environmental Auditor Qualifi cation CourseIn-house environment-related information on the intranet
■ In-House Environment Learning Structure
Cost Category
Preventing pollution
Protecting global environment
Resource recycling
Upstream/downstream
Maintenance
R&D
Community activities
Environmental damage
Invested Amount
1,645
204
193
0
1
0
0
0
Costs
1,228
204
1,747
4
159
36
25
1,012
(Millions of yen)
■ Spending for Environmental Protection in Fiscal 2006
Raise environmental awareness among employees
Precautionary action and reduction of environmental impact
Environment Learning
● New-recruit training
● ISO 14001 Internal Environmental Auditor Qualification Course
● Environment education at plants and facilities
● Access to environment learning materials
● Access to environment-related information
<Seminars> <Intranet>
Resources are assets in limited supply yet vital to the way we live today. Therefore, the development of
applications to derive maximize benefi t from these limited resources for society while ensuring a suffi cient
supply to sustain the next generation has become a pressing concern worldwide. As a maker of basic ma-
terials, Mitsubishi Materials aims to use nonrenewable resources wisely.
Mitsubishi Materials CSR Report 200641
Prudent Use of Resources While Contributing to Protection of the Natural Environment
The scope of resource consumption covers 16 plants and research
facilities of the parent company, Mitsubishi Materials. We provide
details on our practices and three years’ worth of data on our web site.
Total Energy Consumption
45.4 billion kilojoules(Crude oil equivalent: 1.17 million kiloliters)
Mitsubishi Materials has pursued strategies targeting improved energy consumption per unit by
an average of 1% per year. From fiscal 2007, however, the Company will be redirecting efforts
toward energy-saving measures to achieve its newly highlighted greenhouse gas target. See
page 43 for details.
Energy consumption, primarily in cement production and copper smelting and refining
operations, reached 45.4 billion kilojoules, equivalent to 1.17 million kiloliters of crude oil, in
fiscal 2006. As for major energy source usage by volume, we consumed 920 million kilowatt-
hours of purchased electricity, 626,000 tons of coal and 484,000 tons of petroleum coke.
By switching to different types of fuels and utilizing alternative sources, such as waste oil and
waste plastics, we have compensated for the causes of increased energy use, chiefly higher
production output, and held energy consumption to around the fiscal 2005 level.
The primary use of water is for cooling during production processes.
In fiscal 2006, we used 95.96 million cubic meters of water. Seawater accounted for 80% of
this amount, and fresh water, such as industrial-use water and groundwater, accounted for the
remaining 20%.
To prevent any waste of water, we encourage the use of recirculated water and promote
installation of more closed systems.
Water Use
95.96million cubic meters
INPUT
ProductsThe cornerstone of our operating foundation is the production of basic materials. Consequently,
we consume considerable amounts of natural resources. Basic materials are indispensable to
the way we live today, so to satisfy market demand while using as little of the world’s limited
natural resources as possible, we aggressively turn to recycled raw materials as key resources.
Recycled raw materials from waste and by-products accounted for 18%, or 3.07 million tons,
of raw material input in fiscal 2006. Had the waste—1.89 million tons—not been recycled, it
probably would have gone into landfills.
Raw Material Input
17.45 million tons
Mitsubishi Materials CSR Report 2006 42
Environmental Report
http://www.mmc.co.jp
*Desulfurizing equipment eliminates SOx in waste gas generated through the combustion of fossil fuels.
*PRTR is a program to identify, calculate and disclose data on 1) the level of emissions released into the environment from various kinds of chemical substances with toxic properties, and 2) the amount of such chemical substances contained in waste that is transported away from the plant or facility where it was produced.
Sulfur oxides (SOx) and nitrogen oxides (NOx), two of the main components of air pollution, are
produced through the combustion of fuels. We curb the amount of air-polluting substances that
are generated at our manufacturing plants by reducing fuel consumption. We have also trimmed
the amount of air-polluting substances that are actually emitted into the atmosphere by
installing desulfurizing equipment* and other devices.
The key culprits of water pollution are chemical oxygen demand (COD) and biochemical
oxygen demand (BOD) discharge as well as nitrogen and phosphorous. At our manufacturing
plants, we have installed wastewater treatment facilities to prevent discharge of these
substances into public bodies of water.
Emissions into the Air and Bodies of Water
While we are working to cut the amount of hazardous chemical substances we use and actively
switching to alternatives, the alternatives present challenges of their own. We are doing all we
can to prevent hazardous chemical substances from entering the environment.
In fiscal 2006, the volume of chemical substances designated under the Pollutant Release
and Transfer Register (PRTR) Law* comprised 125 tons in the amount released and 88 tons in
the amount transferred.
Volume of Hazardous Chemical Substance Emissions
125 tons
OUTPUT
ProductionActivities
Reducing the amount of waste produced through operations is equally as important as turning
waste into reusable raw materials. Therefore, Mitsubishi Materials has directed concerted
efforts to reducing waste from its operations since 1997.
In fiscal 2006, the volume of industrial waste from our operations reached 29,000 tons, and
of this amount, 71% was recycled for use as a new raw material in another application.
Volume of Industrial Waste
29,000 tons
SOx: 240,000 cubic meters BOD: 35 tonsNOx: 5.07 million cubic meters COD: 129 tonsSoot and Dust: 371 tons Nitrogen: 298 tons Phosphorous: 4 tons
from production processes, but in fi scal 2006, the Compa-ny began summarizing data based on a formula presented in the Law Concerning the Promotion of Measures to cope with Global Warming (the Anti-Global Warming Law), which was revised in April 2006.
The volume of greenhouses gas emissions, converted to a CO2 equivalent, amounted to 8,586 thousand tons. CO2 was most prevalent—at more than 99% of the total—with minor percentages of methane (CH4) and nitrous oxide (N2O).
Efforts to Prevent Global Warming
Mitsubishi Materials emits a considerable amount of greenhouse gases from the energy sources used to
run production processes. Efforts to prevent global warming are a social responsibility of all companies,
and we, too, strive to reduce greenhouse gas emissions.
Mitsubishi Materials CSR Report 200643
To date, Mitsubishi Materials has tackled various mea-sures to prevent global warming at its plants and facilities. The efforts have actually been at the heart of corporate energy-saving strategies, and the Company will continue to entertain ideas related to the reduction of greenhouse gases and a Companywide approach to implementing these ideas will be imperative to success.
With this in mind, we established a technical committee for global warming prevention in October 2005 to focus on Companywide policy for global warming countermea-sures and goals to be achieved. In addition, we formulated a target—to be reached by fi scal 2011—on reduced CO2 emissions from energy used at plants and facilities.
Objectives have been set for each business segment—in-house company—with plants and facilities. The Met-als, Advanced Materials & Tools, and Electronic Materials & Components companies will aim for average annual improvement of 1% in energy consumption per unit at plants and facilities under respective control, while the Ce-ment Company will strive to maintain its fi scal 2005 level.
The Cement Company has been assigned a different type of target because past efforts to raise energy effi cien-cy through the introduction of energy-saving equipment have already resulted in one of the world’s highest energy-effi ciency levels. The task for the Cement Company is thus to sustain its laudable level of energy consumption per unit.
Through these approaches to mitigate the effect of global warming, Mitsubishi Materials seeks to achieve a 6% reduction in CO2 emissions from energy sources at plants and facilities by fi scal 2011, compared with the level recorded in fi scal 1991.
We will assess the progress made toward numerical tar-gets and, if necessary and feasible, we will pursue strate-gies to cut greenhouse gases other than CO2 from energy sources and assign targets to Group companies as well.
Policy on Global Warming Countermeasures
Global Warming Countermeasure Objectives at Mitsubishi Materials
Fiscal 2011 Target for CO2 from Energy Sources
• Metals • Advanced Materials & Tools • Electronic Materials & Com-
ponents
• Achieve annual improve-ment of 1% in energy con-sumption per unit
• Cement • Maintain fi scal 2005 level
■ Segment-Specific Objectives
3,832 thousand tons (down 6% from fi scal 1991)
■ Fiscal 2011 Target for CO2 Emissions from Energy Sources
■ CO2 Derived from Energy Sources
19910
1,000
2,000
3,000
4,000
5,000
(Thousands of tons)
1998 1999 2000 2001 2002 2003 2004 2005 2006
■ CO2 Derived from Production Processes
20020
2,000
1,000
3,000
4,000
5,000
6,000
2003 2004 2005 2006
(Thousands of tons)
MethaneNitrous OxideOthers (HFCs, PFCs, SF6)Total
Greenhouse GasActual Volume in Fiscal 2006 (Thousands of tons, CO2 equivalent)
■ Actual Volume of Greenhouse Gas Emissions in Fiscal 2006
Breakdown3,6704,881less than 1530less than 18,586
Energy SourcesProduction ProcessesOther
Notes:1. HFCs: hydrofl uorocarbons; PFCs: perfl uorocarbons; SF6: sulfur hexafl uoride.2. Data covers emissions from directly operated plants and facilities, as of March 31, 2006.3. Actual results for CO2 derived from production processes in fi scal 2006 were calculated accord-
ing to the formula presented in the Anti-Global Warming Law. A different calculation method was applied up to and including fi scal 2005.
The bar graphs below show trends in CO2 derived from energy sources and CO2 derived from production process-es at Mitsubishi Materials. The volume of CO2 from energy sources in fiscal 2006 is about 10% less than the level recorded in fi scal 1991. But since we expect emissions to increase, paralleling the start-up of more manufacturing plants and facilities, we will continue to embrace measures to reduce emissions and achieve our fi scal 2011 target.
Volume of Greenhouse Gas Emissions
Mitsubishi Materials had already been keeping track of data on CO2 derived from energy sources and CO2 derived
CO2
Mitsubishi Materials CSR Report 2006 44
Environmental Report
Mitsubishi Materials actively embraces strategies to save energy and protect the environment at the logistics stage, substantiated by the fact that the Company already trans-ports almost 90% of its products by ship, a mode that generates less CO2 per unit than trucks.
We are working toward greater reduction of CO2 emis-sions to prevent global warming, in response to the April 2006 introduction of a revised Energy Conservation Law.
Mitsubishi Materials applies technologies acquired through the development of underground resources and promotes the utilization and development of renewable energy, such as geothermal and hydroelectric power, which do not rely on fossil fuels. Currently we have six hydroelectric plants and two geothermal plants, one of which supplies steam, in Akita Prefecture, which together generate about 500,000 megawatts of clean power each year.
The Central Research Institute of the Electric Power Industry estimates that the use of geothermal and hydro-electric plants instead of oil-fi red plants to generate power has the effect of curbing CO2 emissions by about 0.7 kilo-grams per kilowatt. Based on this statistic, Mitsubishi Ma-terials’ production of about 500,000 megawatts of power in fi scal 2006 had the effect of preventing about 360,000 tons of CO2 that would have otherwise, through petro-leum-fueled power generation, entered the atmosphere.
Routine inspections can alter annual generating volume, but we expect to be able to achieve continuous reduction of CO2 in excess of 350,000 tons per year.
We draw on technologies accumulated through the development and operation of the Ohnuma Geothermal Plant, which went online in 1974, and the Sumikawa Geo-thermal Plant, which went online in 1994, to participate in domestic and international feasibility studies and technol-ogy development projects.
Renewable Energy Business Reducing Logistics-Related CO2 Emissions
The Forestry Division at Mitsubishi Materials Real Estate was established in April 2005, in line with formulation of a management plan for forests owned by Mitsubishi Materials, and an of-fi ce was set up in Sapporo, on Japan’s northern island of Hokkaido.
In October of that year, Mitsubishi Materials entrusted all of its forests to my division and we began management of these Company-owned lands. We establish rules, prepare docu-ments and undertake actual condition surveys—the basic requirements for forest certifi cation, a status that recognizes companies executing forest management practices that are appropri-ate and ensure sustainability.
Basic surveys to record tree height and diameter and to identify what lies within the forest are indispensable to suitable forest management practices. Right now, to enhance our knowl-edge and techniques, we conduct stand and understory surveys on our own, all the while rec-ognizing that the forest environment is a very harsh place for humans—a damp environment with bugs, prickles, poisonous plants, wide expanses of bamboo grass that make for precari-ous footing and, in mountain areas, treacherously steep slopes.
Notable social contribution through forestry business begins with solid groundwork
Reforestation and Forest Maintenance
Fiscal Year
Geothermal Power
Geothermal (steam supply)
Hydroelectric Power
TotalCO2 Reduction over Coal-Fired
Plants (tons)Ohnuma Geo-thermal Plant
Sumikawa Geothermal Plant
Water from Komata-gawa near Kazuno
2001
2002
2003
2004
2005
2006
469,024
511,855
491,872
565,264
531,740
500,057
53,246
53,571
52,862
55,041
55,558
53,394
326,547
371,122
353,161
424,105
384,383
357,736
89,231
87,162
85,849
86,118
91,799
88,927
34.1
37.3
35.8
41.1
38.7
36.4
■ Annual Renewable Energy Production Volume (Megawatts-hour)
V O I C E
Forests have various beneficial functions, including the ability to mitigate natural disasters, such as landslides and fl ooding, and to form clean water reservoirs. One function that has captured considerable interest is a forest’s capac-ity to absorb CO2, the primary catalyst of global warming.
Forest management at Mitsubishi Materials originally began with the production of timber posts by the Company’s predecessor, Mitsubishi Mining, to support mine tunnels. Today, forest management has acquired a more environmental perspective, and efforts are directed toward maintaining these wooded lands and sustaining the inherent benefi ts they present to the world.
Forests created and cared for by Mitsubishi Materials in fi scal 2004, 2005 and 2006 covered about 453 hectares, 503 hectares and 413 hectares, respectively. In fi scal 2007, the fi gure is expected to reach 499.9 hectares. In addition, we have already commenced preparations to acquire for-est certifi cation, with the fi rst of what we hope will be as early as fi scal 2010.
We realize that many years of smelting and refining operations at Naoshima Smelter & Refi nery have had more than just a minor impact on the surrounding plant life. In a concerted effort to make up for past damage, we un-dertake on-site greening events every year. In fi scal 2005, we brought green back to a bleak 7.4 hectares, and we set a goal to reforest more than 5 hectares annually from fiscal 2006 onward. In addition, employees volunteer in civic tree-planting events to restore the forest that was decimated by fi re in 2004.
Hiroshi MiyamuraManager, Forestry Division,Mitsubishi Materials Real Estate
Mitsubishi Materials CSR Report 200645
Eco-Product Creation
“Environment friendly” is a buzzword for production processes, of course, but it also extends to raw mate-
rial procurement and waste recycling efforts. For some products, we also apply Life Cycle Assessment (LCA),
as part of our social commitment to identify and ameliorate environmental impact.
The composite image of the Mitsubishi Materials Group is that of a comprehensive basic materials maker, providing a wide array of products. Some members of the Group manufacture and supply materials and components that contribute to the reduced environmental impact of many different end products, including automobiles and house-hold appliances. In addition, as a Group, we promote the expansion of businesses, such as recycling and waste treat-ment services, that help to minimize overall environmental impact.
We will continue to pursue these kinds of activities. In fact, realizing the importance of standards to properly ad-dress the environment-friendly quality of products and ser-vices, in fi scal 2006 we reviewed existing evaluation points and clarifi ed benchmark values.
Our current evaluat ion standards—points and categories—are presented below. Since we also undertake environment-specific businesses, such as recycling and waste treatment services, we have broken down the menu into environment-friendly products, for which the primary function is not environment-oriented, and products and services designed to limit environmental impact and for which the primary function is specifically to restrict negative impact on the environment.
On page 46, we present several eco-products sold by Group companies or under development by Group com-panies.
We aim to develop and provide more products with an environment-friendly quality to meet the needs of our cus-tomers and society at large.
By introducing environment-friendly products and servic-es—that is, eco-products—we make our position on envi-ronmental protection and related activities widely known. To foster greater exchange with stakeholders, we set up a booth at Eco-Products exhibitions every December.
Since the fi rst exhibition, Eco-Products 1999, we have participated regularly, setting up displays to introduce our cement and metals businesses as well as our recycling business, which focuses on household appliance and alu-minum can recycling. We have also presented information on environment-friendly products and environment resto-ration efforts.
At Eco-Products 2005, we put the spotlight on the UBC* integrated processing system—can-to-can recycling undertaken completely within the Mitsubishi Materials Group to turn UBCs into the raw material for new alumi-num cans—and MOISS, a building material for interior use with the ability to absorb hazardous chemical substances and foster a pleasant indoor environment. * UBCs: Please turn to page 20 for a detailed description.
Participating in Eco-Products ExhibitionsEco-Products
■ Products and Business Categories within Scope of Evaluation
Our Eco-Products Exhibition
Heightened social interest in global environmental issues and a
growing awareness of key issues has sparked steady movement
toward the establishment of a resource-recycling society. Eco-
Products, launched in Japan in 1999 to raise the profi le of envi-
ronment-friendly products, services and concepts and to expand
business opportunities for participating companies, is the largest
eco-related exhibition in Japan.
Eco-Products 2005 attracted more than 140,000 visitors,
providing exhibitors with an opportunity to make eco-products
and eco-services more accessible and understandable to a wide
audience and to promote sales. It also offered the chance for
businesses to distribute and exchange information on environ-
mental technologies and related solutions. From this perspective,
Eco-Products is an event that contributes to eco-branding, eco-
marketing and the globalization of eco-products and eco-services.
What is the Eco-Products Exhibition?
■ Evaluation Points for Eco-Products
1. Resource-saving, water-conserving
2. Energy-saving (reduced fossil fuel consumption)
3. Reduced consumption of substances with potential for environmental impact
4. Reduced emissions of substances with potential for environmental impact
5. Reduced waste
6. Reuse and recycling
7. Environment data disclosure
8. Others
Products Services, Processes
Environment-Friendly Products Environmental Impact-Lowering Business
Products to reduce environmental impact
Production technologies and systems
Stage evaluation (production, use, disposal,
transport, packaging, environment data
disclosure, etc.)
● Waste treatment and recycling operations
● Renewable energy, etc.
Environment-friendly products
(primary function of products is not environment oriented)
Products, operations, technologies and other aspects of busi-
ness that contribute directly to reduced environmental impact
Mitsubishi Materials CSR Report 2006 46
Environmental Report
Sampling of Eco-Products from the Group
NOXER: Paving Blocks with Air-Purifi cation Capability(Cement Company)
RFID Solutions(Corporate Technology & Development Division, Business Incubation Department)
PI Series: Clear Heat-Cutting Paints(Electronic Materials & Components Company, JEMCO Inc.)
Cadmium-Free Contacts(Advanced Materials & Tools Company, Mitsubishi Materials C.M.I. Corp.)
HM2 System: For Dioxin-Contaminated Soil, Sediment and Fly Ash (Affi liated Corporations Division, Mitsubishi Materials Techno Corporation)
ROX® Series: Copper Wire Rod Made by Low Environmental Impact Process(Metals Company)
NOXER is a paving stone with a surface coating that facili-tates the neutralization of harmful substances, such as NOx, in the air. Natural energy—sunlight—initiates the process. When the surface of NOXER, consisting of a titanium oxide coating, is exposed to ultraviolet rays from the sun, a photo-catalytic reaction occurs, producing activated oxygen, which converts NOx into environmentally benign nitrogen and oxy-gen. Efforts are under way to promote NOXER on a global scale, including applications in Europe.
RFID, from Radio Frequency IDentifi cation, has drawn atten-tion as a novel automated recognition technology. Mitsubi-shi Materials supplies the hardware, including the IC tags, reader-writer and host server, and develops the necessary software. On the technology side, On Metal Tag is an IC tag developed with proprietary technology that maintains per-formance capabilities even if attached directly to a metal surface.
RFID has many potential applications, including recy-cling; safety control, especially for food products; and waste treatment traceability control.
The PI Series is a selection of paints containing ultrafi ne ceramic par-ticles which, when applied to glass, fi lm or other plastics, refl ect and absorb heat while retaining high transparency. The paint effectively keeps car and room interiors comfortably cool, especially in summer, but allows light to pass freely through windows to preserve a feeling of open space. A derivative benefi t is that cooler temperatures obviate the need for air-conditioning, which leads to reduced energy consump-tion and lower CO2 emissions.
One of many automotive ap-plications for the PI Series is the steering wheel. A coating of paint can cut the temperature of the plastic by 5 to 10 degrees Celsius.
The photo shows film coated with PI Series paint.
Cadmium-free contacts made and marketed by Mitsubishi Materials are highly reliable and boast excellent wear-resis-tance and antideposit-forming properties. They extend the life of relays and switches and contribute to the realization of smaller, higher density devices.
These contacts are used extensively in relays and switches for onboard electrical compo-nents, household appliances, power distribution units and control units, as well as high-voltage applications, such as hybrid cars.
The HM2 System is an on-site system that renders dioxin-contaminated soil, ash, sludge, and river and harbor silt harmless. The system uses a dry-treatment process, wherein a degrading agent is added, the mixture is heated, and dioxins in the exhaust gas are neutralized in the DeDIOX dioxin deg-radation unit. No effluent is generated, and the solids and exhaust gas that remain after treatment clear environmental standards for safe disposal and release.
Created for on-site use, each unit is compact and in-dependent, facilitating system installation in areas of various sizes and confi gurations.
Mitsubishi Materials achieved a world’s fi rst with ROX® Se-ries, a process using the SCR (Southwire Continuous Rod) casting system for effi cient production of high-performance oxygen-free copper wire rods and copper alloy wire rods. The primary applications of ROX®-made products are as wire rods for information technology equipment and as a basic mate-rial for printed circuit boards.
The photo shows plated copper anodes made from ROX® copper wire rods.
Comparative Table with GRI Guideline 2002
Mitsubishi Materials CSR Report 200647
1. Vision and Strategy 1.1 Statement of the organisation’s vision and strategy regarding its contribution to sustainable development ………………… 3-4, 5, 7, 21-22, 37
1.2 Statement from the CEO (or equivalent senior manager) describing key elements of the report ………………………………………………… 3-4
2. Profi le◆ Organisational Profi le
2.1 Name of reporting organisation ……………………………………………………………………………………………………………………………… 1
2.2 Major products and/or services, including brands if appropriate ………………………………………………………………………………… 1, 13-20
2.3 Operational structure of the organisation. ………………………………………………………………………………………………………………… 1
2.4 Description of major divisions, operating companies, subsidiaries, and joint ventures ……………………………………………………………… 1
2.5 Countries in which the organisation’s operations are located ………………………………………………………………………………………… 1-2
2.6 Nature of ownership; legal form ………………………………………………………………………………………………………………………………… 1
2.7 Nature of markets served ……………………………………………………………………………………………………………………… 13-20, 21-22
2.8 Scale of the reporting organisation:(number of employees; products produced/services offered; net sales; and total capitalisation
broken down in terms of debt and equity.) …………………………………………………………………………………………………………… 1, 11
2.9 List of stakeholders, key attributes of each, and relationship to the reporting organisation ……………………………… 7, 23-24, 25, 27-29, 30
◆ Report Scope
2.10 Contact person(s) for the report, including e-mail and web addresses ……………………………………………………………………………… 50
2.11 Reporting period (e.g., fi scal/calendar year) for information provided ………………………………………………………………………………… 2
2.12 Date of most recent previous report ……………………………………………………………………………………………………………………… 50
2.13 Boundaries of report (countries/regions, products/services, divisions/facilities/joint ventures/subsidiaries) ……………………………………… 2
2.14 Signifi cant changes in size, structure, ownership, or products/services that have occurred since the previous report ………………………… 2
2.15 Basis for reporting on joint ventures, partially owned subsidiaries, leased facilities, outsourced operations, and other situations
that can signifi cantly affect comparability from period to period and/or between reporting organisations ………………………………………… 2
◆ Report Profi le
2.17 Decisions not to apply GRI principles or protocols in the preparation of the report …………………………………………………………………… 2
2.18 Criteria/defi nitions used in any accounting for economic, environmental, and social costs and benefi ts ……………………………………… 40
2.20 Policies and internal practices to enhance and provide assurance about the accuracy, completeness, and reliability that can be
placed on the sustainability report ………………………………………………………………………………………………………………………… 6
2.22 Means by which report users can obtain additional information and reports about economic, environmental, and social aspects
of the organisation’s activities, including facility-specifi c information ………………………………………………………………………………… 2
3. Governance Structure and Management Systems◆ Structure and Governance
3.1 Governance structure of the organisation, including major committees under the board of directors that are responsible for setting
strategy and for oversight of the organisation …………………………………………………………………………………………………………… 6
3.2 Percentage of the board of directors that are independent, non-executive directors ………………………………………………………………… 6
3.4 Board-level processes for overseeing the organisation’s identifi cation and management of economic, environmental,
and social risks and opportunities ………………………………………………………………………………………………………………… 6, 37-38
3.6 Organisational structure and key individuals responsible for oversight, implementation, and audit of economic, environmental,
social, and related policies ……………………………………………………………………………………………………………………… 3-4, 6, 37-38
3.7 Mission and values statements, internally developed codes of conduct or principles, and policies relevant to economic,
environmental, and social performance and the status of implementation …………………………………………………………………… 3-4, 5-6
3.8 Mechanisms for shareholders to provide recommendations or direction to the board of directors …………………………………………… 23-24
◆ Stakeholder Engagement
3.9 Basis for identifi cation and selection of major stakeholders ……………………………………………………………………………………………… 7
3.10 Approaches to stakeholder consultation reported in terms of frequency of consultations by type and by stakeholder group … 23, 25, 28, 30
3.11 Type of information generated by stakeholder consultations ………………………………………………………………………………………… 23
◆ Overarching Policies and Management Systems
3.13 Explanation of whether and how the precautionary approach or principle is addressed by the organisation ……………………………………… 9
3.15 Principal memberships in industry and business associations, and/or national/international advocacy organisations ………………… 1, 15, 39
3.16 Policies and/or systems for managing upstream and downstream impacts ………………………………………………………………………… 30
3.18 Major decisions during the reporting period regarding the location of, or changes in, operations ………………………………………………… 2
3.19 Programmes and procedures pertaining to economic, environmental, and social performance …………………………………………… 7-8, 12
Mitsubishi Materials CSR Report 2006 48
4. GRI Content Index A table identifying location of each element of the GRI Report Content, by section and indicator …………………………………………………… 47-49
5. Performance Indicators◆ Integrated Indicators
Cross-cutting indicators
Eco-effi ciency measures ………………………………………………………………………………………………………………………………………… 41-42
◆ Economic Performance Indicators
Direct impact
Customers
EC1 Net sales ………………………………………………………………………………………………………………………………………………………… 11
EC2 Geographic breakdown of markets ……………………………………………………………………………………………………………………… 11
Providers of Capital
EC6 Distributions to providers of capital broken down by interest on debt and borrowings, and dividends on all classes of shares,
with any arrears of preferred dividends to be disclosed ………………………………………………………………………………………… see IR*
EC7 Increase/decrease in retained earnings at end of period ………………………………………………………………………………………… see IR*
◆ Environmental Performance Indicators
Materials
EN1 Total materials use other than water, by type …………………………………………………………………………………………………………… 41
EN2 Percentage of materials used that are wastes (processed or unprocessed) from sources external to the reporting organisation …… 14, 16, 22
Energy
EN3 Direct energy use segmented by primary source ……………………………………………………………………………………………………… 41
EN17 Initiatives to use renewable energy sources and to increase energy effi ciency ……………………………………………………………………… 44
EN19 Other indirect (upstream/downstream) energy use and implications, such as organisational travel, product lifecycle management,
and use of energy-intensive materials ………………………………………………………………………………………………………………… 21-22
Water
EN5 Total water use ……………………………………………………………………………………………………………………………………………… 41
EN21 Annual withdrawals of ground and surface water as a percent of annual renewable quantity of water available from the sources ………… 41
Biodiversity
EN7 Description of the major impacts on biodiversity associated with activities and/or products and services in terrestrial, freshwater,
and marine environments ……………………………………………………………………………………………………………………………… 14, 39
EN27 Objectives, programmes, and targets for protecting and restoring native ecosystems and species in degraded areas ……………… 35-36, 39
Emissions, Effl uents and Waste
EN8 Greenhouse gas emissions (CO2, CH4, N2O, HFCs, PFCs, SF6) ……………………………………………………………………………………… 43
EN10 NOx, SOx and other signifi cant air emissions by type ………………………………………………………………………………………………… 42
EN11 Total amount of waste by type and destination ………………………………………………………………………………………… 13-14, 15-16, 22
EN12 Signifi cant discharges to water by type ………………………………………………………………………………………………………………… 42
EN13 Signifi cant spills of chemicals, oils, and fuels in terms of total number and total volume ………………………………………………………… 10
Suppliers
EN33 Performance of suppliers relative to environmental components of programmes and procedures described in response
to Governance Structure and Management Systems section (Section 3.16) …………………………………………………………………… 37-38
Products and Services
EN14 Signifi cant environmental impacts of principal products and services ………………………………………………………… 13, 35, 37, 39, 41-42
EN15 Percentage of the weight of products sold that is reclaimable at the end of the products’ useful life and percentage that is actually
reclaimed ………………………………………………………………………………………………………………………………………………… 22, 42
Compliance
EN16 Incidents of and fi nes for non-compliance with all applicable international declarations/conventions/treaties, and national,
sub-national, regional, and local regulations associated with environmental issues ……………………………………………………………… 10
Transport
EN34 Signifi cant environmental impacts of transportation used for logistical purposes ………………………………………………………………… 44
Overall
EN35 Total environmental expenditures by type ……………………………………………………………………………………………………………… 40
Mitsubishi Materials CSR Report 200649
◆ Social Performance Indicators
Labour Practices and Decent Work
Employment
LA1 Breakdown of workforce, where possible, by region/country, status (employee/non-employee), employment type (full time/part time),
and by employment contract (indefi nite or permanent/fi xed term or temporary). Also identify workforce retained in conjunction with
other employers (temporary agency workers or workers in co-employment relationships), segmented by region/country …………………… 29
LA12 Employee benefi ts beyond those legally mandated …………………………………………………………………………………………………… 29
Labour/Management Relations
LA3 Percentage of employees represented by independent trade union organisations or other bona fi de employee representatives broken
down geographically or percentage of employees covered by collective bargaining agreements broken down by region/country ………… 28
LA13 Provision for formal worker representation in decision-making or management, including corporate governance …………………………… 28
Health and Safety
LA5 Practices on recording and notifi cation of occupational accidents and diseases, and how they relate to the ILO Code of Practice
on Recording and Notifi cation of Occupational Accidents and Diseases …………………………………………………………………………… 29
Training and Education
LA16 Description of programmes to support the continued employability of employees and to manage career endings …………………………… 28
Diversity and Opportunity
LA10 Description of equal opportunity policies or programmes, as well as monitoring systems to ensure compliance and results of monitoring … 5
Human Rights
Strategy and Management
HR1 Description of policies, guidelines,corporate structure, and procedures to deal with all aspects of human rights relevant to operations,
including monitoring mechanisms and results ……………………………………………………………………………………………………… 5, 28
Non-discrimination
HR4 Description of global policy and procedures/programmes preventing all forms of discrimination in operations, including monitoring
systems and results of monitoring …………………………………………………………………………………………………………………… 5, 28
Disciplinary Practices
HR9 Description of appeal practices, including, but not limited to, human rights issues …………………………………………………………………… 9
HR10 Description of non-retaliation policy and effective, confi dential employee grievance system (including, but not limited to, its impact
on human rights) ……………………………………………………………………………………………………………………………………………… 9
Society
Community
SO7 Description of policy, procedures/management systems, and compliance mechanisms for preventing anti-competitive behaviour ……… 5, 9
Product Responsibility
Customer Health and Safety
PR1 Description of policy for preserving customer health and safety during use of products and services, and extent to which this policy
is visibly stated and applied, as well as description of procedures/programmes to address this issue, including monitoring systems
and results of monitoring ……………………………………………………………………………………………………………………………… 25-26
PR4 Number and type of instances of non-compliance with regulations concerning customer health and safety, including the penalties
and fi nes assessed for these breaches ………………………………………………………………………………………………………………… 10
Products and Services
PR2 Description of policy, procedures/management systems, and compliance mechanisms related to product information and labelling ……… 25
PR8 Description of policy, procedures/management systems, and compliance mechanisms related to customer satisfaction,
including results of surveys measuring customer satisfaction. Identify geographic areas covered by policy ………………………………… 25
Respect for Privacy
PR3 Description of policy, procedures/management systems, and compliance mechanisms for consumer privacy ……………………………… 26
* “see IR” refers to text that appears in such corporate materials as the Company’s annual report and the Yukashoken Hokokusho (fi nancial report for
Japanese authorities).
Note: This comparative table lists the pages on which readers will fi nd content related to the indicator presented in the GRI Guidelines and should not be
taken as affi rmation of compliance to GRI Guidelines.
For further information, please contact us at:
Editorial Postscript
This report is the second issue of Mitsubishi Materials’ CSR Report following last year’s.
The Company regards this publication as a vital communication tool for providing stakeholders with a
straightforward, readily understandable description of Groupwide CSR activities. Beginning with the 2006 edi-
tion, the CSR Report will also function as a PDCA tool to reinforce the effectiveness of CSR activities, and toward
this end, updates on the Mitsubishi Materials Group’s action plan will be included from now on.
The Mitsubishi Materials Group, which operates under the collective profi le of a comprehensive maker of
basic materials, is distinguished by multiple management in diverse business domains. For the Company—and
by extension, the Group—to realize its underlying corporate philosophy of contributing to people, society and
the Earth, a positive CSR perspective must be applied to the daily execution of global business activities, and CSR
activities must be attuned to the specifi c aspects that characterize each of the Company’s different business seg-
ments. In “Our Goals—Company Report,” we describe responsibilities fulfi lled and issues still to be addressed in
regard to CSR and related activities.
In the Social Report section, we include comments from stakeholders and people involved in certain activities
that we touch upon in the main text. These comments add a multidimensional perspective to the typical straight
talk on corporate activities.
The CSR Report can only hold so many pages and the extent of information provided is thus limited. However,
we have posted on our web site the supplementary performance data that appeared under the Fact Sheets sec-
tion of CSR Report 2005. We will continue to promote disclosure practices that utilize the features of different
communication tools.
It is our sincere intention to refl ect stakeholder feedback in our CSR activities and thereby make them more
thorough and more responsive to prevailing concerns. We will also strive to offer candid, easy-to-understand
updates on strategies and results. We welcome your opinions and overall impressions regarding these efforts.
Supplementary Information
Details on fi scal results and fi nancial and environment-related topics are posted on our web site. If you would
like more information, please visit us at:
http://www.mmc.co.jp/english/
Reporting Schedule
■ Environmental Report 2004: Published January 2005
■ CSR Report 2005: Published October 2005 in Japanese with subsequent English version available online in March 2006
■ CSR Report 2006: Published September 2006 in Japanese with subsequent English version available online in December 2006.
The CSR Report will be published every year as an annual account of activities.
Mitsubishi Materials CSR Report 2006 50
Environmental Management CenterTel: +81-3-5252-5222
Fax: +81-3-5252-5289
Mitsubishi Materials Corporation 1-5-1, Otemachi, Chiyoda-ku, Tokyo 100-8117, Japan
Corporate Social Responsibility DepartmentTel: +81-3-5252-5260
Fax: +81-3-5252-5261
E-mail: [email protected]